Gold trims gains as euro retreats against US dollar after US GDP revision

Gold trimmed gains after rising earlier in the day as the US dollar recouped losses on disappointing US GDP revision.
Today’s update showed a downward revision of US Q4 GDP growth from 5.9% to 5.6%, sending stock markets in both the US and Europe down and boosting the safe-haven US dollar, which was in decline against the euro today after European Union leaders came to an agreement on a bailout deal for debt laden Greece.
Euro zone states and the International Monetary Fund (IMF) agreed to put together a joint €30 million package to help Greece meet tackle its debt problem. This followed a week of arguments between the European Commission and Germany, which was unwilling to participate in any financial aid packages for the troubled country.
However, the plan did not substantially improve the long-term outlook for Greece’s debt crisis and limited the euro’s gains.
Gold is seen as a riskier investment alternative and usually moves inversely to the US dollar.
Spot gold retreated to US$1,093/oz after touching US$1,100/oz, while silver improved to US$16.72/oz and platinum dropped to US$1,593/oz.
Major mining stocks were in decline, save for silver producers. Blue chip Fresnillo (LSE: FRES) and peer from FTSE 250 Hochschild Mining (LSE: HOC) added 0.5% and 2.9% respectively.
Gold producer Randgold Resources (LSE: RRS) lost nearly 1%, while midcap Petropavlovsk (LSE: POG) was flat. Platinum miners Lonmin (LSE: LMI) and Aquarius Platinum (LSE: AQP) posted small losses.
Specialty chemicals firm Johnson Matthey (LSE: JMAT) made little headway.
Turkey and Saudi Arabia operating gold explorer KEFI Minerals (AIM: KEF) led the juniors with a 7% advance, while Lesotho operating diamond miner Kopane Diamond Developments (AIM: KDD) and Kazakhstan operating gold producer and copper developer Frontier Mining (AIM: FML) followed with gains of over 4%.
Junior diamond producer Stellar Diamonds (AIM: STEL) and UK-registered China operating copper and gold miner Central China Goldfields (AIM: GGG) headed in the opposite direction, slipping 9.5% and 9% respectively.
Tajikistan operating gold miner Kryso Resources (AIM: KYS) was down 5%, while Commodity asset development company Mercator Gold (AIM: MCR) and Africa operating gold miner GMA Resources (AIM: GMA) lost 4.5%.

http://www.proactiveinvestors.co.uk/companies/news/14927/gold-trims-gains-as-euro-retreats-against-us-dollar-after-us-gdp-revision-14927.html