Gold wallows near three-month low


SINGAPORE — Gold wallowed near a three-month low yesterday, remaining under pressure due to a firm dollar, while investors fretted over an important Italian bond auction later in the day.

Spot gold edged down 0,3% to $1 550,90 an ounce by 00:22GMT, on course for an 11% decline in December. It hit a three-month low of $1 549,24 in the previous session.

US gold fell 0,7% to $1 552,50.

The dollar index edged higher, after its surge in the previous session pushed down precious metals, as investors grew increasingly nervous over an Italian bond auction scheduled for yesterday, even after a strong sale of short-term bonds on Wednesday.

Spot silver dropped nearly 1% to a three-month low of $26,78, after prices fell more than 5% in the previous session.

Spot platinum fell to $1 369,75, its lowest in nearly two years and recovered slightly to $1 370, 99.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings were unchanged at 1 254,57 tonnes by December 28.
Market news:

US stocks fell more than 1% on Wednesday after a hefty year-end rally and the S&P 500 erased gains for the year on renewed concerns about the eurozone’s financial health.

The euro nursed heavy losses in Asia yesterday, having suffered a sudden drop overnight as moves were amplified in poor year-end liquidity after stop-losses were triggered.