Dec 23, (McxBaba.com) -
Gold struggled to get past
overnight losses, trading near its lowest in three weeks on
Tuesday, as a slump in oil prices and strength in global
equities and the dollar hurt the metal's appeal.
FUNDAMENTALS
* Spot gold was little changed at $1,174.85 an ounce
by 0043 GMT. It tumbled nearly 2 percent on Monday, when it also
dropped to a three-week low of $1,170.17.
* The dollar held firm early on Tuesday, having risen to its
highest level in nearly nine years against a basket of major
currencies, driven in part by persistent weakness in the euro
and a fresh fall in the yen.
* A higher greenback makes dollar-denominated gold more
expensive for holders of other currencies, while also dulling
bullion's appeal as a hedge.
* Equity markets worldwide pushed higher on Monday after
rising expectations for more European stimulus supported shares
in the region, while year-end buying helped push the S&P 500 and
the Dow industrials to a record close.
* Lower oil prices also decreased gold's appeal as a hedge
against oil-led inflation. Oil prices resumed their downward
march on Monday.
* Technical selling once prices broke through $1,192 also
intensified the sell-off in bullion.
* Weak U.S. economic data failed to boost gold. U.S. home
resales tumbled to a six-month low in November, according to
data released on Monday.
* On the regulatory front, it would widen the
scope of laws which make the manipulation of market benchmarks a
criminal offence to include seven more rates covering the
currency, gold, oil and silver markets by April 1.