Business | Markets
Gold edges down as equity markets firm up
Metal loses appeal as a safe haven for investors after G20 summit boosts hopes of recovery.
- Reuters
- Published: 23:01 April 3, 2009
London: Gold edged lower on Friday, extending the previous session's 2.5 per cent losses, as equity markets turned firmer, denting the metal's appeal as a haven.
But traders are largely staying on the sidelines ahead of key US jobs data due later in the session.
Spot gold eased to $901.30/$902.80 (Dh3,310/ Dh3,316) an ounce at 0944 GMT from $903.15 late in New York on Thursday.
The metal hit a two-week low on Thursday as a well-received statement from the G20 leaders' summit boosted hopes the economic slowdown may be bottoming out.
"Recent (econ-omic) data has not been better, but it has been better than expected, so now people are talking about a slowdown of a slowdown," Commerzbank analyst Eugen Weinberg said.
"For quite some time people were too positive for gold, so it is not surprising we are under pressure." If gold closes below $900, he said, further losses could be in order.
European shares gave up early losses to turn positive by mid-morning on Friday, with banks rebounding and commodities tracking higher metal and crude prices.
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