Gold dips on stronger equities
, January 8, 2014
Gold eased for a second session on Wednesday as equities inched higher on optimism over US economic growth, curbing bullion's safe-haven appeal.
Prices were hurt by data showing the US trade deficit fell to a four-year low in November as exports hit a record high and weak oil prices held down the import bill.
The numbers, the latest in a string of strengthening economic fundamentals, left economists anticipating a far stronger pace of growth for the fourth-quarter than previously expected.
"The global economy will continue to stabilize in the next few months so we won't have much acceleration of prices," said Alexis Garatti, an economist at Haitong International Research in Hong Kong.
A strong economy and higher equities curb demand for gold which is seen as an alternative investment.
Gold prices will decline in the first half of the year, but may steady in the latter half as fundamentals improve, Garatti
Spot gold had eased 0.3 percent to $1,228.19 an ounce by 0301 GMT, after snapping a five-day rally on Tuesday.
Asian shares climbed on the US trade data, while the dollar was hovering near a one-month high. - Reuters