Gold prices fell in volatile trading on Friday as safe-haven demand dwindled after stocks in major markets largely recovered from a sell-off on easing concerns about Deutsche Bank.
A Lehman-style meltdown for Deutsche Bank or a significantly weaker labor market is needed to boost gold out of its three-month range next week, according to some analyst.
Despite hitting a new two-year high at the start of the quarter, the gold market is headed to a quarterly loss Friday, dropping 0.7% since July, its first three-month loss since the fourth quarter of last year. December Comex gold futures last traded at $1,320.40 an ounce, down 0.42% on the day.
With the growing realization that Deutsche Bank’s problems may be more than temporal but less than fatal, the U.S.-listed stocks of the megabank rocketed up 14.5% today. Needless to say, that pulled equities up along with it. The three major New York indexes were up between 0.80% and 0.90% each.
New York (AFP) - Heavy market pressure on Deutsche Bank eased Friday as a knowledgeable source told AFP the US fine over toxic debt it sold would be only $5.4 billion, not the $14 billion originally demanded.
Market jitters about Deutsche Bank have Wall Street and Main Street respondents in the weekly Kitco survey looking for gold to trade steady to higher next week, with bears about as rare as a grizzly strolling down a sidewalk on Manhattan Island.
Wall Street analysts looking for gold-price appreciation tended to cite safe-haven buying on worries about the strength of the German bank. Among those who see sideways prices, Wall Street participants also cite the German bank as an offsetting factor to others that might otherwise hurt gold.
Twenty analysts and traders took part in a weekly Wall Street survey. Ten participants, or 50%, see sideways prices next week, while nine, or 45%, look for higher. Only one voter, or 5%, sees gold falling.
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