Singapore: Bullion was little changed on Wednesday, but strong US economic data and expectations of more stimulus from the European Central Bank dragged on the metal as they boosted the appeal of the US dollar and equities.
Gold was steady at $1,282.20 an ounce, having jumped about 1 per cent on Tuesday on chart-based buying before paring gains. Prices hit a two-month low of $1,273.06 on August 21 on speculation of an eventual increase in US interest rates. US gold was flat at $1,283.00 an ounce. The Conference Board's measure of US consumer confidence rose more than expected in August, hitting its highest level since October 2007. Separately, orders for long-lasting US manufactured goods posted their biggest gain on record in July.
Speculation is growing that the European Central Bank is preparing a programme of large-scale asset purchases to weaken the euro and try to jump-start growth in the struggling euro zone. A ceasefire agreement between Israel and the Palestinians aimed at ending their seven-week conflict in Gaza went into effect on Tuesday and joyous Palestinians streamed into the streets of the battered enclave to celebrate.
Newmont Mining Corp has withdrawn an international arbitration filing against the Indonesian government, government and company officials said on Tuesday, indicating a possible breakthrough in a seven-month dispute that halted exports. President Barack Obama vowed, ‘justice will be done’ against the Islamic State killers of American journalist James Foley on Tuesday as the United States sought to identify targets for potential airstrikes in Syria.
