Gold rebounds from 1-month low

SINGAPORE: Gold firmed in a technical rebound on Thursday ahead of a European Central Bank interest rate decision, but weak oil, a firmer US dollar and declines in stock markets weighed.

Gold was trading at $811.15 an ounce, up $0.60 from New York's notional close on Wednesday, when it dropped to a month low of $806.40, partly driven by weak stock markets that forced investors to cash in.

Japan's Nikkei average fell 4.1% after US stocks dropped to six-week lows on worries about a deepening recession and Japanese machinery orders fell a record 16.2% in November from the previous month.

The euro fell against the dollar and yen on Wednesday after a downgrade to Greece's debt rating heightened fears about the eurozone economy and a sharp slide in US retail sales suggested a deepening global slump.

Standard & Poor's move to cut Greece's sovereign debt rating also weighed on the euro, sending it at one point to a near six-week low of 116.58 yen and boosting the chances that the European Central Bank would cut interest rates on Thursday from 2.5% to 2%.

US crude futures steadied on Thursday after dipping overnight when prices were pressured by rising inventories and slumping demand in top oil consumer the United States.

Platinum was trading at $925.00 an ounce, down $8.00 from New York's notional close.

New York gold futures GCZ9 added $3.6 an ounce to $812.4 in electronic trade.

Source: UtviNews