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MTECHTIPS:-Jan 29, 2016, 08.06 AM | Source: Reuters Gold heads for best month in a year as US data disappoints
Gold steadied on Friday after recent gains that lifted the metal to its highest since November, keeping it on track to end January with its strongest monthly climb in a year. Fresh data released on Thursday showed new orders for US durable goods posted their biggest drop in 16 months in December, suggesting that growth in the world’s top economy braked sharply at the end of 2015. FUNDAMENTALS * Spot gold was little changed at USD 1,114.01 an ounce by 0041 GMT. Profit-taking on Thursday caused bullion to retreat from a 12-week high of USD 1,127.80 reached the previous day. For the month, gold was up 5 percent, its biggest such gain since January last year. * Gains on Wednesday were spurred by the Federal Reserve’s statement where it acknowledged the challenges facing the global economy and financial markets. * The US central bank has now put the world on notice that the slide in oil prices and sharp slowdown in global growth may be capable of changing the Fed’s bias from implying a steady set of future rate hikes to one pointing to an extended pause or even a rate cut driven by stubbornly low inflation. * The weak durable goods orders for December underlines expectations that the Fed’s tightening cycle could be on hold. The data comes ahead of US fourth-quarter gross domestic product due later on Friday. * Economists polled by Reuters suggest US GDP growth of 0.80 percent in October-December and annual expansion of 2.5 percent in 2016. ECON * US gold for February delivery GC cv1 was off 0.1 percent at USD 1,114.50 an ounce. * With gold holding firm as oil prices tumbled to their lowest since 2003 this month, an ounce of bullion reached the equivalent in price of nearly 40 barrels
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