Wednesday 4 February 2015

Gold struggles as Greek plan boosts equities

Greece's new government dropped calls for a write-off of its foreign debt and proposed ending a standoff with its official creditors by swapping the debt for growth-linked bonds


Gold was steady but failed to rebound on Wednesday after falling more than 1 percent in the previous session as Greece's plan to end a standoff with creditors lifted the appetite for risky assets such as equities.


 FUNDAMENTALS 

* Spot gold was little changed at $1,260.86 an ounce by 0018 GMT, after falling 1.2 percent on Tuesday. That marked      gold's fourth drop in five sessions.

 * U.S. gold for April delivery was also nearly flat at $1,261.50 an ounce. 

* Greece's new government dropped calls for a write-off of its foreign debt and proposed ending a standoff with its official creditors by swapping the debt for growth-linked bonds

. * New orders for U.S. factory goods fell for a fifth straight month in December, but a smaller-than-previously reported drop in business spending plans supported views of a rebound in the months ahead.

 * The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings slipped to 24.59 million ounces on Tuesday from 24.65 million ounces the day before, which was the highest level since October


. MARKET NEWS


 * Asian stocks rose on the back of Greece's debt plan while the U.S. dollar nursed big losses as a revival in risk appetite swept through crowded trading positions.

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