Gold prices are set to mark an eleventh year of gains in 2011 as investors seek refuge from an uncertain global economic outlook, with analysts revising up expectations sharply in a Reuters survey released on Wednesday.
The dollar fell close to a seven-month low against the yen on Thursday on downbeat comments from Federal Reserve Chairman Ben Bernanke, while better-than- forecast euro zone data buoyed the euro.
Bernanke said the U.S. economic outlook was unusually uncertain and that the Fed was ready to ease monetary policy further if necessary, sending the two-year U.S. Treasury yield to a record low and diminishing the allure of the dollar versus the yen.
Irish economy received little respite this week when the International Monetary Fund (IMF) said it is not too optimistic about the Ireland economy. And, this has come as a huge repite for the sliding gold prices on Thursday.
With more and more bad economic news emanating from Europe, the gold prices have slowly started picking up the lost rhythm this week.
Although the Ugandan government can boost the security of its fledgling oil industry from future terrorist attacks that may scare away certain investors, Africa analysts doubt violence replicating the twin bombs that struck during the World Cup final is likely.
European officials appeared to be at odds on Thursday over whether to release stress test results earlier than planned and reveal banks' exposure to sovereign debt, in a last-minute struggle over how to regain confidence in the financial sector.
Oil reversed early losses on Thursday to head back toward $77 a barrel as signs of a stronger recovery in Germany soothed investor concerns, but rising U.S. inventories kept prices in check.
The Federal Reserve stands ready to ease monetary policy further if the budding U.S. economic recovery withers, Fed Chairman Ben Bernanke said on Wednesday, describing the outlook as unusually uncertain.
With the results of stress tests on 91 European banks looming, financial institutions have been coming up with their own scenarios of what to expect.
How financial markets react to the results may well depend on the expectations currently being reached by analysts.
Gold prices fell below $1,190 an ounce in Europe on Thursday as investors awaited the outcome of European bank stress tests at the end of the week, with a majority of institutions expected to pass the tests.
Spot gold was bid at $1,186.05 an ounce at 0833 GMT (4:33 a.m. EDT), against $1,191.80 late in New York on Wednesday. U.S. gold futures for August delivery fell $6.00 to $1,185.80.
A increase in labour disputes between management and workers in China, mostly at foreign-owned factories in the southeast, has raised questions about the country's future as a low-cost manufacturing centre.
The hammer is a bottom reversal pattern that comes after a wave of selling, meaning that is it indicating that downward momentum is coming to an end. The long lower shadow and the close of near the upper end of the session's highs indicates that there was a sharp sell off during the session but prices bounced back closing near its highs. The session closing near its high is important so the hammer should have either a miniscule or no upper shadow.
Stock index futures pointed to a higher open on Wall Street on Thursday following the previous session's steep losses, with futures for the S&P 500 up 0.31 percent, Dow Jones futures up 0.32 percent and Nasdaq 100 futures up 0.58 percent at 0810 GMT (4:10 a.m. EDT).
The dollar fell toward a seven-month low against the yen but world stocks recovered earlier losses on Thursday after Federal Reserve chairman Ben Bernanke painted a gloomy outlook for the U.S. economy.
The yen neared a 7-1/2-month high and Asian stocks slid on Thursday after comments by the head of the Federal Reserve added to concerns about the U.S. economy, causing investors to dump riskier assets ahead of European bank stress test results.
Oil slid for a second day on Thursday, a day after Fed chief Ben Bernanke rekindled unease across financial markets over the pace of economic recovery, while rising U.S. inventories also kept prices in check.
Hungary will negotiate with the European Union about next year's budget but will also continue talks with other international organisations including the IMF, the prime minister's spokesman said on Thursday.
When it comes to planning next year's budget we will have to negotiate with the EU so with everybody in the right time, Peter Szijjarto told public television M1, reiterating comments made by Prime Minister Viktor Orban in Berlin on Wednesday.
China is expected to maintain strong growth in the rest of this year and there is no need for a second stimulus, government economists said in remarks published on Thursday.
The State Information Center, a think tank under the National Development and Reform Commission, forecast economic growth of 9.5 percent this year, which would be close to the average for the past 30 years and reflect China's reasonable growth potential, the official China Securities Journal reported.
Japan warned on Thursday it wants to avoid excessive rises in the yen, as the currency hovers near a seven-month high against the dollar on worries about the U.S. economic outlook.
We have been saying that we want to avoid excessive rises in the yen, Deputy Finance Minister Motohisa Ikeda told reporters, when asked about the yen's recent strengthening.
The Obama administration may report somewhat better fiscal news when it delivers its mid-session budget review later this week, but the United States still faces a massive deficit and rising debt.
Higher corporate taxes and Wall Street's quick repayment of a taxpayer bailout could see the projected 2010 U.S. budget deficit fall a bit when the review is released on Friday.
Oil slid for a second day on Thursday, a day after Fed Chairman Ben Bernanke rekindled unease across financial markets about the pace of economic recovery, while rising U.S. inventories also kept prices in check.
The yen neared a 7-1/2-month high and Asian stocks slid on Thursday after comments by the head of the Federal Reserve added to concerns about the U.S. economy, causing investors to dump riskier assets ahead of European bank stress test results.
The dollar slid towards a recent seven-month low versus the yen on Thursday after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy but steered clear of hinting about further easing as some had hoped.
The euro, which lost sharply after his comments sparked outflows from stocks and other risk assets, held steady at lower levels ahead of Europe's bank stress test results on Friday.
Gold slipped more than half a percent on Thursday and could revisit its weakest level in two months as investors sold bullion to cover equities losses ahead of Europe's bank stress test results this week.
Gold has fallen more than 6 percent since hitting a lifetime high around $1,264 an ounce in late June on worries the debt crisis in Europe would spread.
The dollar slid towards a recent seven-month low versus the yen on Thursday after Federal Reserve Chairman Ben Bernanke expressed concern about the U.S. economy but steered clear of hinting about further easing as some had hoped.
Gold prices dropped further in Asian trade Thursday along with stocks as markets await outcome of Europe's bank stress test.
Gold for immediate delivery was seen trading at $1185.71 an ounce at 12.00 noon Singapore time while U.S. gold futures for August delivery was at $1,185.3 an ounce.
Now, will Ireland help gold prices go up? It seems so. When Dubai economic crisis unraveled, gold prices zoomed. When Greece economic tragedy came to the light, gold prices soared.
Now, Moody's Investors Service downgraded Ireland one notch, to Aa2 from Aa1, although it remained comfortably above junk level. Moody's also changed the outlook on the ratings to stable from negative.
The yen neared a 7-1/2-month high and Asian stocks slid on Thursday after comments by the head of the Federal Reserve added to concerns about the U.S. economy, causing investors to dump riskier assets ahead of European bank stress test results.
U.S. Treasury Secretary Timothy Geithner said on Wednesday that Elizabeth Warren has the credentials needed to head the new Bureau of Consumer Protection set up as part of a landmark financial reform overhaul.
Facebook will sell stock in a IPO when the time is right, CEO Mark Zuckerberg said in an ABC TV interview, addressing persistent speculation about its stock market debut.
The Australian Dollar opens lower against the greenback at 0.8780.
