AIRLINK 184.10 Decreased By ▼ -0.39 (-0.21%)
BOP 12.72 Decreased By ▼ -0.04 (-0.31%)
CNERGY 7.87 Increased By ▲ 0.18 (2.34%)
FCCL 41.13 Decreased By ▼ -0.07 (-0.17%)
FFL 15.25 Increased By ▲ 0.13 (0.86%)
FLYNG 26.85 Increased By ▲ 0.27 (1.02%)
HUBC 131.62 Decreased By ▼ -0.21 (-0.16%)
HUMNL 14.15 Increased By ▲ 0.06 (0.43%)
KEL 4.54 Increased By ▲ 0.04 (0.89%)
KOSM 6.14 Decreased By ▼ -0.25 (-3.91%)
MLCF 51.85 Increased By ▲ 0.14 (0.27%)
OGDC 213.48 Increased By ▲ 4.60 (2.2%)
PACE 6.30 Increased By ▲ 0.03 (0.48%)
PAEL 43.00 Increased By ▲ 0.92 (2.19%)
PIAHCLA 16.68 Increased By ▲ 0.06 (0.36%)
PIBTL 9.10 Increased By ▲ 0.02 (0.22%)
POWER 11.12 Decreased By ▼ -0.15 (-1.33%)
PPL 175.26 Increased By ▲ 2.40 (1.39%)
PRL 35.10 Increased By ▲ 0.03 (0.09%)
PTC 24.32 Decreased By ▼ -0.12 (-0.49%)
SEARL 95.10 Decreased By ▼ -0.18 (-0.19%)
SILK 1.13 No Change ▼ 0.00 (0%)
SSGC 33.85 Decreased By ▼ -0.33 (-0.97%)
SYM 17.61 Decreased By ▼ -0.11 (-0.62%)
TELE 8.31 Increased By ▲ 0.04 (0.48%)
TPLP 11.68 Increased By ▲ 0.01 (0.09%)
TRG 60.95 Increased By ▲ 0.47 (0.78%)
WAVESAPP 11.50 Decreased By ▼ -0.03 (-0.26%)
WTL 1.47 Increased By ▲ 0.01 (0.68%)
YOUW 3.97 Decreased By ▼ -0.04 (-1%)
AIRLINK 184.10 Decreased By ▼ -0.39 (-0.21%)
BOP 12.72 Decreased By ▼ -0.04 (-0.31%)
CNERGY 7.87 Increased By ▲ 0.18 (2.34%)
FCCL 41.13 Decreased By ▼ -0.07 (-0.17%)
FFL 15.25 Increased By ▲ 0.13 (0.86%)
FLYNG 26.85 Increased By ▲ 0.27 (1.02%)
HUBC 131.62 Decreased By ▼ -0.21 (-0.16%)
HUMNL 14.15 Increased By ▲ 0.06 (0.43%)
KEL 4.54 Increased By ▲ 0.04 (0.89%)
KOSM 6.14 Decreased By ▼ -0.25 (-3.91%)
MLCF 51.85 Increased By ▲ 0.14 (0.27%)
OGDC 213.48 Increased By ▲ 4.60 (2.2%)
PACE 6.30 Increased By ▲ 0.03 (0.48%)
PAEL 43.00 Increased By ▲ 0.92 (2.19%)
PIAHCLA 16.68 Increased By ▲ 0.06 (0.36%)
PIBTL 9.10 Increased By ▲ 0.02 (0.22%)
POWER 11.12 Decreased By ▼ -0.15 (-1.33%)
PPL 175.26 Increased By ▲ 2.40 (1.39%)
PRL 35.10 Increased By ▲ 0.03 (0.09%)
PTC 24.32 Decreased By ▼ -0.12 (-0.49%)
SEARL 95.10 Decreased By ▼ -0.18 (-0.19%)
SILK 1.13 No Change ▼ 0.00 (0%)
SSGC 33.85 Decreased By ▼ -0.33 (-0.97%)
SYM 17.61 Decreased By ▼ -0.11 (-0.62%)
TELE 8.31 Increased By ▲ 0.04 (0.48%)
TPLP 11.68 Increased By ▲ 0.01 (0.09%)
TRG 60.95 Increased By ▲ 0.47 (0.78%)
WAVESAPP 11.50 Decreased By ▼ -0.03 (-0.26%)
WTL 1.47 Increased By ▲ 0.01 (0.68%)
YOUW 3.97 Decreased By ▼ -0.04 (-1%)
BR100 11,993 Increased By 67.7 (0.57%)
BR30 36,019 Increased By 282.8 (0.79%)
KSE100 114,298 Increased By 435.4 (0.38%)
KSE30 35,572 Increased By 171.1 (0.48%)

imageMANILA: Gold edged higher on Wednesday as a further fall in equities and oil burnished bullion's safe-haven draw, although slow physical demand from Asia kept the metal well under this month's peak.

Asian stocks slid to a four-year trough as U.S. crude oil plumbed a fresh 2003 low, underlining worries about the global economy. The dollar also retreated.

The International Monetary Fund cut its global growth forecasts for the third time in less than a year after China's economy grew at its slowest rate in a quarter of a century in 2015.

Spot gold was up 0.4 percent at $1,091.36 an ounce by 0630 GMT.

U.S. gold for February delivery gained 0.2 percent to $1,091.70 an ounce.

"Gold's safe haven rationale is back in vogue," Citigroup analysts said in their 2016 commodities outlook, amid fears over the Chinese economy, weak equity markets and geopolitical tensions in the Arabian Gulf.

"While geopolitical issues typically tend to be short-lived in terms of lending support to gold prices, we expect ongoing global macro concerns to lend support this quarter, added by a modestly more benign U.S. dollar outlook," they said.

Gold scaled a two-month high of $1,112 an ounce on Jan. 8 and has traded below that level since, facing resistance at around $1,090 that some analysts attribute to slow Asian physical buying.

Demand for gold in China, the world's biggest consumer, is seen dented by an economy that could slow further. Nomura expects the world's second-largest economy to grow at 5.8 percent this year against 6.9 percent in 2015.

There is a modest premium to world gold prices in China, and prices in India, the second-largest gold consumer, are at a discount to the global benchmark, wrote HSBC analyst James Steel.

But Steel said the ability of gold to cut the bulk of losses, persistent risk-off sentiment and a revival in the euro suggest further price gains.

"The $1,100/oz is a stiff resistance level, however, and while we believe it will be overcome, it may take some time," he said.

Spot silver was flat at $14.015 an ounce and palladium slipped 0.7 percent to $488.61. Platinum , which touched a seven-year low of $812.95 an ounce on Monday, dropped 0.6 percent to $818.50. Gold edges higher as Asian stocks retreat, oil extends rout

* Gold's safe haven rationale back in vogue - Citi

* But metal still trading below $1,100/oz

* Coming up: U.S. consumer prices at 1330 GMT

(Adds milestone on Asian stocks, dollar, updates prices)

By Manolo Serapio Jr

MANILA, Jan 20 (Reuters) - Gold edged higher on Wednesday as a further fall in equities and oil burnished bullion's safe-haven draw, although slow physical demand from Asia kept the metal well under this month's peak.

Asian stocks slid to a four-year trough as U.S. crude oil plumbed a fresh 2003 low, underlining worries about the global economy. The dollar also retreated.

The International Monetary Fund cut its global growth forecasts for the third time in less than a year after China's economy grew at its slowest rate in a quarter of a century in 2015.

Spot gold was up 0.4 percent at $1,091.36 an ounce by 0630 GMT.

U.S. gold for February delivery gained 0.2 percent to $1,091.70 an ounce.

"Gold's safe haven rationale is back in vogue," Citigroup analysts said in their 2016 commodities outlook, amid fears over the Chinese economy, weak equity markets and geopolitical tensions in the Arabian Gulf.

"While geopolitical issues typically tend to be short-lived in terms of lending support to gold prices, we expect ongoing global macro concerns to lend support this quarter, added by a modestly more benign U.S. dollar outlook," they said.

Gold scaled a two-month high of $1,112 an ounce on Jan. 8 and has traded below that level since, facing resistance at around $1,090 that some analysts attribute to slow Asian physical buying.

Demand for gold in China, the world's biggest consumer, is seen dented by an economy that could slow further. Nomura expects the world's second-largest economy to grow at 5.8 percent this year against 6.9 percent in 2015.

There is a modest premium to world gold prices in China, and prices in India, the second-largest gold consumer, are at a discount to the global benchmark, wrote HSBC analyst James Steel.

But Steel said the ability of gold to cut the bulk of losses, persistent risk-off sentiment and a revival in the euro suggest further price gains.

"The $1,100/oz is a stiff resistance level, however, and while we believe it will be overcome, it may take some time," he said.

Spot silver was flat at $14.015 an ounce and palladium slipped 0.7 percent to $488.61. Platinum , which touched a seven-year low of $812.95 an ounce on Monday, dropped 0.6 percent to $818.50.

Copyright Reuters, 2016

Comments

Comments are closed.