Buying Of Bullish Option

Oil prices fell on Friday in tug-of-war trading, posting a 2012 low and a third straight weekly loss as debt problems in Greece and Spain kept concerns about the euro zone economy in focus. Crude futures felt pressure from news that European officials were working on contingency plans in case Greece exits the euro zone and from a ratings downgrade of 16 Spanish banks by Moody's Investors Service. Helping push oil lower early was data showing Chinese home prices in April fell for a second month in a row from year-ago levels. "The problems in Europe, highlighted by the political instability in Greece, remain as the primary factor for today's slide in oil prices," said Kyle Cooper, managing partner at IAF Advisors in Houston. "There is also a factual realization that the Chinese economy ...

Gold rallied more than 2.6 percent on Thursday, its largest one-day gain since late January, as technical buy signals and new signs of a sluggish U.S. economy more than offset deepening despair over the euro zone. After flirting with a bear market on Wednesday, down more than 20 percent from its September record, bullion rallied early after Philadelphia Federal Reserve data showed a contraction in factory activity in the U.S. mid-Atlantic region that rekindled some hope the Fed would plough more money into the system to stimulate the economy, traders said. Technical buying also fueled gains after gold had nearly hit a key December low, trading just shy of key technical long-term support at the 100-week moving average of $1,515 per oz. But with the euro and U.S. stocks in decline and ...

Gold rose more than 1 percent on Thursday, bouncing off a 4-1/2 month low, as weaker prices attracted new physical buyers, but gains were likely to be limited as the euro was undermined by fears of a deepening debt crisis in Greece. Spot gold rose 1 percent to $1,553.80 an ounce by 09.07 a.m. EDT, from $1,538.30 late in New York on Wednesday, when it plunged to $1,527 - its weakest since December 29. The precious metal rose to a high of $1,557.56 earlier, helped by the approaching expiry of gold options in the COMEX futures market. U.S. gold futures hit a high of $1,557.90 an ounce and were at $1,554.30, up 1.1 percent. The contract had plunged to a multi-month low of $1,526.70 on Wednesday. Gold, traditionally a safe-haven asset, has been moving in tandem with riskier assets such as ...

Gold extended losses on Wednesday to slip to its weakest level since late December after efforts to form a new government in Greece collapsed, prompting investors to cut their exposure to the precious metal. Bullion has this year been moving in tandem with assets that are perceived to be risky, casting off its status as a safe-haven in times of economic instability. Concerns about upheaval in the euro zone hit the euro and sent share prices lower across Asia as Greek political leaders meet Wednesday to form a caretaker government that will lead the country into its second election in just over a month. U.S. June gold futures, which often dictate spot gold, dropped more than 1 percent to a low of $1,532.7 an ounce, their lowest since December 29. Cash gold was also at a 4-1/2 month low. ...

Gold edged up on Monday as bargain hunters lifted prices from four-month lows, but gains were capped as an inconclusive Greek election raised the risk the country could exit the euro zone and fanned fears of a worsening debt crisis in the region. Gold has moved in tandem with riskier assets this year as the turmoil in Europe sent the euro to multi-month lows and investors turned to the safety of the dollar, analysts said. The U.S. dollar has also been supported by optimism that more positive labor market numbers will be seen soon. Gold hit an intraday high at $1,585.39 an ounce and was barely changed at $1,578.45 by 0615 GMT. Bullion had tumbled to a low of around $1,573 on Friday, its weakest since early January, on fears that the debt crisis in Europe will hurt global economic growth. ...

(Reuters) - The dollar rose from a one-month low against the euro and a 2-1/2-month trough versus the yen on Tuesday in thin trading, after a key U.S. manufacturing gauge showed factory activity unexpectedly picked up last month, offsetting recent weak economic reports. The Institute for Supply Management's factory data was one of the rare instances of positive U.S. economic news in recent weeks. Traders used the stronger-than-expected ISM manufacturing report to rebuild long dollar bets that had grown stale as the economy's outlook weakened. "The view on the economy has swung from optimism to pessimism of late and this could bring us back to the middle," said Nick Bennenbroek, head of FX strategy for North America at Wells Fargo in New York. "ISM suggests there's no real reason to get ...

(Reuters) - Gold rose for a fourth consecutive session on Friday and posted its biggest weekly gain since late February, as disappointing U.S. growth and European debt jitters boosted investment demand for the precious metal. Bullion buying accelerated after a report showed U.S. economic growth cooled in the first quarter as businesses cut back on investment. Some safe-haven demand also supported prices after a credit downgrade of Spain's sovereign debt by Standard & Poor's. Gold's four-day rise was underpinned by option-related buying and after Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank would not hesitate to launch another round of bond purchases to boost growth if necessary. "The GDP data may confirm ongoing stimulatory U.S. monetary policies, which ...

(Reuters) - Gold rose for a fourth consecutive session on Friday, on track for its biggest weekly gain since late February, as disappointing U.S. growth and European debt jitters triggered investment demand for the precious metal. Bullion buying accelerated after a report showed U.S. economic growth cooled in the first quarter as businesses cut back on investment. Some safe-haven buying also supported gold after a credit downgrade of Spain's sovereign debt by Standard & Poor's. Gold's four-day rise was boosted by option-related buying and after Federal Reserve Chairman Ben Bernanke said on Wednesday the U.S. central bank would not hesitate to launch another round of bond purchases to boost growth if necessary. "The GDP data may confirm ongoing stimulatory U.S. monetary policies, which ...

Gold prices rose on Tuesday, following gains in equities and industrial metals, but selling pressure capped gains ahead of a U.S. option expiration and on uncertainty over a U.S. Federal Reserve policy meeting. Bullion, which for most of this year has tracked riskier assets, climbed as U.S. equities rose after strong earnings from bellwether U.S. companies and a mildly encouraging U.S. home sales report. .N A rally in copper prices also lifted gold. Trading volume was below average for a third straight session, as investors waited for Fed policy makers to announce the outcome on Wednesday of their two-day meeting. Price volatility could spike ahead of Wednesday's May COMEX options expiry, as both call and put options investors look to profit from heavy bets at the $1,650 strike price. ...