Gold & Precious Metals

* World stocks slip after biggest weekly drop since June

* Fed set to trim monetary easing programme further -analysts

* Chinese gold imports hit record in 2013 (Updates prices)

Gold prices eased on Monday, retreating from the 10-week highs they hit overnight on the back of weakness in global stocks, as traders cashed in gains in the metal ahead of a key Federal Reserve meeting this week.

Expectations that the Fed could trim monetary stimulus further from the $10 billion-a-month reduction to its bond-buying programme late last year sreved to lift the dollar, while safe-haven currencies such as the yen were in demand as a sell-off in emerging marketscontinued.

Spot gold was at $1,263.60 an ounce by 1239 GMT, down 0.4 percent, having hit its highest since mid-November overnight at $1,278.01 an ounce. U.S. gold futures for February delivery were down 60 cents an ounce at $1,263.70.

…more Reuters Stats HERE

 

 


Dollar up on Fed tapering view, outperforms yen and franc.

Safe-haven currencies such as the yen and the Swiss franc took a breather on Monday, with both falling against the dollar which benefited from expectations the Federal Reserve may reduce monetary stimulus this week.

A rebound in two-year Treasury yields helped the dollar to 102.55 yen, up 0.2 percent on the day. It had fallen to 101.77 yen, its lowest since early December, in early Asian trade when liquidity was thin.

Despite the recovery, the dollar has shed nearly 2 percent in the past three sessions as investors saw currencies like the yen and the Swiss franc as relatively safe while a sell off in emerging markets assets picked up pace late last week.

The dollar rose against the Swiss franc, bouncing from a one-month low struck on Friday. The euro also rose 0.2 percent to 1.2265 francs having fallen to a one-month low of 1.2227 francs on Friday when demand for the yen and Swiss franc intensified.

….more HERE

Asian stocks declined, with the region’s benchmark index posting its biggest loss since June, as concern that the global economic recovery is faltering spurred investors to sell riskier assets.

The MSCI Asia Pacific Index dropped 2.2 percent to 134.62 at 7:59 p.m. in Tokyo to its lowest level since Sept. 6. The gauge declined for the past four weeks. Japan’s Topix index sank 2.8 percent today. Global stocks tumbled the most since June on Jan. 24 as a selloff in emerging-market currencies prompted investors to seek havens.

“Optimism among global stock investors is waning,” said Tetsuo Seshimo, a Tokyo-based portfolio manager at Saison Asset Management Co., which oversees about $791 million. “Markets are losing momentum after rising a lot toward the end of last year.”

…..more HERE

 

Thai anti-government protests that have shut down parts of Bangkok may cost the nation’s tourism industry as Chinese visitors cancel trips during the lunar new year holiday that starts this week.

Arrivals will fall by half to 1 million this month, Minister of Tourism and Sports Somsak Phurisisak said Jan. 23, with some hotels in the capital and nearby Pattaya and Hua Hin 30 percent full. 

Prime Minister Yingluck Shinawatra imposed a state of emergency in Bangkok Jan. 22 as attacks on protesters escalated and demonstrators blockaded Bangkok’s busiest intersections.

….read more HERE

Ukraine’s political crisis deepened over the weekend as PresidentViktor Yanukovych’s offer to share power with the opposition failed to end anti-government unrest, raising the stakes for a special parliament session tomorrow.

Arseniy Yatsenyuk, Vitali Klitschko and Oleh Tyahnybok on Jan. 25 urged demonstrators to keep pushing for Yanukovych’s resignation and snap elections after the president offered to hand over top cabinet jobs. Lawmakers will interrupt their winter break tomorrow to vote on a no-confidence motion and a bid to repeal anti-protest laws passed this month.

The country of 45 million, a key route for Russian energy toward Europe, is enduring the first deadly political crisis in its 22 years of independence. After struggling to tame demonstrations that claimed their first lives last week as anti-protest laws triggered riots, Yanukovych offered his biggest concessions yet on Jan. 25. Clashes in Kiev resumed that night, while attempts to seize regional government offices widened.

…..more HERE

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