Gold Prices Muted as Markets in 'Holiday Mood', Investors Await More US Data

GOLD PRICES moved in a tight $4 range on Thursday in London as investors await the release of key US data. Q3 US GDP data, initial jobless claims and durable goods order figures will be released later on Thursday. Gold price in dollar terms at 12 pm in London was $1130. The market has already been described as being in a "holiday mood."

Global stocks fell this morning as US shares finished in the red yesterday after thin trading volume. Crude oil also extended its losses below $53 per barrel amid supply increase.

T-bonds market stabilised after a sell off as long-term yields reached a two-year high.

The dollar index, measuring the strength of the greenback against a basket of other major currencies, slipped from a 14-year peak reached on Tuesday.

After an initial retreat at the beginning of the week, the USD/EUR pair bounced back Tuesday midday to reach $1.04670 on Thursday morning, erasing this week's drop as Eurozone consumer confidence rose.

Since Wednesday afternoon gold for Euro investors has fallen shedding €10 per ounce to trade at €1083 per ounce.

The world oldest bank and 3rd largest Italian commercial and retail institution Banca Monte dei Paschi di Siena SpA was heading for nationalisation as there was not sufficient investor interest in buying their stocks. The Italian government was preparing a €20-billion rescue package for the country failing banks, according to Bloomberg.

Monte dei Paschi shares didn't open on Thursday in Milan and has lost 87% of their value since the beginning of the year.

European Central Bank said in an economic bulletin on Thursday that "growth appears to be holding up in advanced economies and seems to have bottomed out in emerging market economies."

Gold prices for UK investor popped up from an early dip on Thursday morning, at £916, marking a rise of 0.9% on the week so far. 

Silver prices were range-bound like gold prices in dollars and down 1.42% on the week, at $15.88 per ounce this morning.

Former French Minister of the Economy and current EU Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici proposed to reinforce checks on cash, prepaid card and precious metal movements from outside the Union yesterday, in an attempt to block terrorist and other criminal funding capabilities on the continent.

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