Gold off two-week lows but weaker dollar pressures

TOKYO (BestGrowthStock) – Gold prices rebounded on Monday from a two-week low hit late last week, but remained pressured by a weaker dollar and investors’ profit-taking.

FUNDAMENTALS

* Spot gold inched up 0.3 percent to $1,103.20 an ounce from New York’s notional close of $1,099.50.

* Gold briefly dropped below $1,100 an ounce on Friday to its lowest level since February 25 despite a dollar rise, as investors unwound positions added the week before due to currency volatility amid a Greek debt crisis.

* Speculation of further monetary tightening by China and economic uncertainty amid sovereign debt worries out of Europe triggered heavy futures liquidation last week.

* U.S. gold futures for April delivery were at $1,103.60 an ounce, up 0.2 percent compared with $1,101.70 on the COMEX division of the NYMEX.

* Noncommercial net long U.S. gold futures positions inched up 0.4 percent to 208,194 contracts in the week ended March 9 from 207,372 contracts a week earlier, according to the weekly Commitments of Traders report published by the Commodity Futures Trading Commission. It was the highest in five weeks.

* The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,115.511 metric tones as of March 12, unchanged from the previous business day.

MARKET NEWS

* Mixed consumer and retail data kept U.S. stocks (Read more about the stock market today. ) near break even on Friday, but major indexes edged higher for a second straight week.

* The dollar was weaker while the euro held near its Friday peak against the dollar on Monday. The dollar dropped to a one-month low against the euro and a two-week trough against sterling on Friday, as investors pared back large bearish bets on the two European currencies following strong euro zone economic data.

DATA EVENTS

* The following data is expected on Monday:

– EU Economic and Financial Affairs Council meets. (N/A)

– Japan Feb consumer confidence index. (0500 GMT)

– Euro zone Q4 employment. (1000 GMT)

– New York Fed Empire State survey for March. (1230 GMT)

– U.S. Feb industrial production/capacity use. (1315 GMT)

– U.S. NAHB index for March. (1700 GMT)

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PRICES

Precious metals prices at 2329 GMT

Metal Last Change Pct chg 2 Day chg MA 30 RSI

Spot gold $1102.95 $3.45 +0.31% -4.75% $1106.40 38

Spot silver $17.11 $0.09 +0.53% -5.89% $16.30 61

Spot plat $1606.50 $2.00 +0.12% +0.22% $1547.07 72

COMEX gold $1103.70 -$4.50 -0.41% -0.40% $1109.21 36

TOCOM gold 3,265 13 +0.40% +1.11% 3,218 52

TOCOM plat 4,710 32 +0.68% +2.55% 4,448 70

Currencies

Euro/dlr $1.376 -$0.001 -0.09% -0.04%

Dlr/yen 90.67 -0.02 -0.02% +0.20%

TOCOM prices in yen per gram. Spot prices in $ per ounce.

Stock Analysis

(Reporting by Chikako Mogi; Editing by Chris Gallagher)

Gold off two-week lows but weaker dollar pressures