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Gold holds weekly decline as Deutsche Bank concerns ebb further
[SINGAPORE] Gold held a weekly decline on speculation that Deutsche Bank AG is working to mend its finances, eroding haven demand.
Bullion for immediate delivery traded at US$1,316.80 an ounce at 8:53am in Singapore, from US$1,315.87 on Friday, according to Bloomberg generic pricing. The metal lost 1.6 per cent last week, dropping on four out of five days.
Investors have zeroed in on the lender as traders questioned the bank's financial health. Agence France-Presse reported on Friday that Deutsche Bank is nearing a pact to pay the US Department of Justice US$5.4 billion, less than half the initial amount requested, to settle a probe related to bad mortgages.
The bank is also poised to reach an agreement with labour representatives to cut jobs, people with knowledge of the matter told Bloomberg News.
Reports on Deutsche Bank "put gold prices under some downward pressure as safe haven buying eased," Australia & New Zealand Banking Group Ltd said in a note on Monday.