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Gold little changed as equity markets swing on China concern
[SINGAPORE] Gold failed to hold early gains as Asian stocks fluctuated after China's latest round of monetary easing. Palladium traded near the lowest in almost five years.
Bullion for immediate delivery advanced as much as 0.5 per cent to US$1,146.64 an ounce and traded 0.1 per cent lower at US$1,136.70 at 9:58 am in Singapore, according to Bloomberg generic pricing. The metal closed 1.3 per cent lower on Tuesday, the biggest decline since July 20 as investors sought haven after US equity futures fell.
China's stocks swung between gains and losses as traders weighed the impact of interest-rate cuts after the steepest four-day equity plunge since 1996. Volatility in global financial markets is "worrisome" and will hamper the Federal Reserve's ability to raise interest rates in September, said Mohamed El-Erian, chief economic adviser at Allianz SE.
"The weak close in equity markets in the US has provided a little bit of support this morning," Daniel Hynes, senior commodities strategist at Australia and New Zealand Banking Group, said by phone from Sydney.
Gold futures for December delivery added 0.6 per cent to US$1,144.80 an ounce on the Comex after retreating 1.3 per cent on Tuesday. Palladium dropped 0.7 per cent to US$534.30 an ounce, extending a 6.3 per cent plunge on Tuesday to the lowest close since Sept 21, 2010. Silver for immediate delivery retreated 0.6 per cent to US$14.6103 an ounce, while platinum was unchanged at US$977.25 an ounce.