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Gold up 1.6% on weak dollar and US output data

February 4, 2014

Bullion snapped five weeks of advances last week, falling 2 per cent, but posted a 3.2 per cent gain in January for the first monthly increase in five, owing to weakness in global equities gripped by concerns over emerging economies. Gold rose 1.6 per cent on Monday after a worse than expected US manufacturing report weighed on the dollar and global equities, while persisting concerns about emerging markets bolstered some investor flight to safety. Spot gold jumped to a session high of $1,264.60 an ounce and was still up 1.5 per cent at $1,262.17 an ounce by 1527 GMT . Bullion snapped five weeks of advances last week, falling 2 per cent, but posted a 3.2 per cent gain in January for the first monthly increase in five, owing to weakness in global equities gripped by concerns over emerging economies. US gold futures for February delivery rose 1.8 per cent to $1,262.20 an ounce. The Institute for Supply Management (ISM) said its index of national factory activity fell to its lowest level since May 2013 at 51.3 last month, from a recently revised 56.5 in December. Emerging markets, economic growth in the United States and the US Federal Reserve's move to taper monetary stimulus remain crucial to the metal's moves in the short term, analysts said. "There is a bit of deterioration in risk appetite, which has given support to gold," ABN Amro's Georgette Boele said.


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Source: Khaleej Times (United Arab Emirates)


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