Singapore: Gold steadied on Wednesday after two days of losses, but it continued to stay near its lowest in seven weeks as strong US factory data boosted optimism about economic growth, diminishing bullion's safe-haven appeal.
Spot gold edged up 0.1 percent to $1,280.39 an ounce. U.S. factory activity accelerated for a second straight month in March and auto sales surged, the latest signs the economy was regaining footing after a brutal winter.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, stated that its holdings fell by 2.10 tonnes to 810.98 tonnes on Tuesday. Anglo American Platinum has sent force majeure notices to some of the suppliers to its South African mines, the world's top platinum producer said, underscoring the widening economic impact of an almost 10-week-old strike.
Deutsche Bank raised its 2014 gold price forecast to $1,261 and silver price forecast to $20 per ounce. Asian share markets are planning to extend their recent rally on Wednesday, as investors chose to accentuate the positive in a mixed bag of global economic data, pressuring safe havens such as the yen and government bonds.
