Friday, 30 September 2016

Gold up as Stocks fall on Deutsche Bank worries; Dollar caps Gains

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Gold inched up on Friday as equities fell on the back of worries about the health of Deutsche Bank, spurring some safe-haven demand for the yellow metal, but a firmer dollar capped gains and the metal was on track to end the week down over 1 percent. Spot gold had risen 0.2 percent to $1,322.80 an ounce by 0439 GMT. It has risen 1 percent in September. U.S. gold futures were mostly flat at $1,326.40 an ounce. 

Deutsche Bank shares slumped to a record low after a report that trading clients had withdrawn excess cash and positions held in the largest German lender. "Probably the news on Deutsche Bank is spurring some buying," said Ronald Leung, chief dealer, Lee Cheong Gold Dealers in Hong Kong. "Gold might trade in the range of $1,310-$1,340 until China comes back from holidays," he added. China's markets will be closed starting on Oct. 1 for the National holidays and resume trading on Oct. 10. 

"Gold is probably going to trade side ways for some time," said Brian Lan, managing director at Singapore-based gold dealer GoldSilver Central, adding that the charts were providing mixed signals. "If stocks aren't doing well then we might see a little support for gold." Asian stocks followed Wall Street lower in early trade on Friday, while oil prices held close to the highest level in almost a month on optimism over an OPEC plan to curb output.

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