Monday, February 13, 2012

Impact Moody's downgraded on gold prices

Impact U.S. ratings agency Moody's downgraded on gold prices ; Gold declined after Moody’s Investors Service downgraded the ratings for six European nations, strengthening the dollar and curbing demand for alternative investments.

Spot gold dropped as much as 0.2 percent to $1,718.25 an ounce and traded at $1,719.43 at 9:49 a.m. in Singapore. Touradji Capital Management LP and GLG Partners LP sold their entire stakes in the SPDR Gold Trust, the biggest exchange- traded product backed by bullion, as of Dec. 31, according to quarterly filings to the U.S. Securities and Exchange Commission.

Moody’s cut the ratings of Italy, Spain, Portugal, Slovakia, Slovenia and Malta, and revised its outlook on the U.K.’s and France’s top Aaa ratings to “negative” citing the region’s debt crisis. That sent the euro lower against the dollar for a third day, and hurt other commodities including oil and copper.

“The ratings cut is negative for market sentiment and will drive a fresh round of haven demand for the dollar,” said Wei Chishan, an analyst at Shanghai Metals Market. “This will pressure gold prices. However, there are many investors waiting to buy on dips, which will help to stem losses.”

Bullion for April delivery fell for a third day, dropping as much as 0.3 percent to $1,719.70 an ounce on the Comex in New York, before trading at $1,723.70. Gold holdings in exchange- traded products rose to 2,390.065 metric tons yesterday, about 0.1 percent, or 2.9 tons, from the Dec. 13 record, according to data tracked by Bloomberg.

Cash platinum fell for a second day, dropping as much as 0.4 percent to $1,645 an ounce, before trading at $1,649. Impala Platinum Ltd. started rehiring at its South African Rustenburg mine, where workers were laid off after a strike, and the company said production will restart as soon as possible. The metal gained to a three-month high of $1,671.88 on Feb. 9 on concern that the disruption may erode a surplus.

Silver for immediate delivery fell as much as 0.5 percent to $33.5525 an ounce, and last traded at $33.6575. Spot palladium was little changed at $699.75 an ounce, after dropping for the past three days. For the latest updates on the stock market, visit Stock Market Today
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