Gold down, but stocks turmoil keeps it close to nine-week highs – by Clara Denina (Reuters U.S. – January 11, 2016)

http://www.reuters.com/

LONDON – Gold retreated on Monday as the dollar rose versus the euro, but was still around a nine-week high as pressure on Asian stock markets continued to support investors’ flight to safety.

Asian shares sank to their lowest in over four years after the People’s Bank of China guided the yuan’s midpoint rate sharply stronger, a move that might calm concerns about a competitive devaluation but only added to market confusion as to Beijing’s ultimate intent on its currency policy.

European shares were steadier, slightly weighing on bullion prices, usually seen as a safer bet by investors.

Spot gold was down 0.1 percent at $1,103.06 an ounce by 1301 GMT, while U.S. gold futures gained 0.5 percent to $1,103.60.

“Gold should be a lot higher, you’ve got all the China concerns, the Middle East tensions … clearly there is a lot of overhead selling, which is capping the price,” Societe Generale analyst Robin Bhar said.

Gold climbed to its highest since early November on Friday, adding more than 4 percent to its value this year, on concerns over the Chinese economy and tumbling stock markets.

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