Gold holds near 3-week high on Cyprus crisis

Gold holds near 3-week high on Cyprus crisis - Gold held steady on Wednesday, close to a three-week high as Cyprus's rejection of bailout terms triggered worries about a default and underpinned safe haven demand in gold.

But buying in Asia's physical markets slowed from earlier in the month as prices rose over the last week.

Cyprus's parliament overwhelmingly rejected a proposed levy on bank deposits as a condition for a European bailout on Tuesday, throwing international efforts to rescue the latest casualty of the euro zone debt crisis into disarray. The threat of a default or even expulsion of Cyprus from the euro zone drove nervous investors to seek refuge in gold, though such support may not last long.

Reuters/Reuters - Gold bars are displayed at South Africa's Rand Refinery in Germiston in a file photo. REUTERS/Siphiwe Sibeko

"Given the relatively small sum involved compared to the previous debt financing schemes that were put together for the Greeks and others, Cyprus is a manageable problem and one that we think will eventually get resolved," said Ed Meir, an analyst at INTL FCStone, in a research note.

Supportive of gold prices, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 2.708 tonnes to 1,222.162 tonnes on Tuesday, the first increase in daily holdings since early February.

Spot gold traded flat at $1,611.46 an ounce by 0255 GMT, near a three-week high of $1,615.16 hit on Tuesday.

U.S. gold was also little changed at $1,610.90.

Technical analysis was bullish. Spot gold could rise to $1,626 as it has cleared a resistance at $1,611, said Reuters market analyst Wang Tao.

Asia's physical gold buyers have, meanwhile, shied away from higher prices, awaiting a return to lower levels when the situation in Cyprus calms down.

"Gold buying from China is slower from a few weeks ago, and people are selling in Shanghai to take profit," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.

"The upside is still limited. After people calm down, they will still invest in other assets."

Upbeat U.S. economic data in recent months has encouraged investors to pile money into the stock market, helping the S&P 500 index climb more than 8 percent so far this year. Gold, in comparison, is down nearly 4 percent since December 31.

Investors will be closely watching the outcome of the Federal Reserve's two-day meeting on Wednesday, as well as a press conference by Fed Chairman Ben Bernanke. Any hint of tightening monetary policy would add to headwind that gold faces.

Europe's car sales in February shrank 10.2 percent on the year to their lowest in at least 23 years, suffering from austerity measures in debt-stricken euro zone nations, weighing on platinum and palladium, which are widely used in producing autocatalysts to clean up exhaust.

Spot platinum inched up 0.2 percent to $1,556.99, off a more than two-month low of $1,545.25. Spot palladium traded nearly flat at $733.22, after tumbling 3.9 percent in the previous session, the sharpest one-day decline in nearly five months. (Reuters)

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Gold holds near two-week high on euro zone concerns

Gold holds near two-week high on euro zone concerns - Gold traded in a two-dollar range on Wednesday, holding near a 1-1/2-week high hit in the previous session when Germany's central bank expressed concerns about the euro zone crisis and the European Central Bank's moves to stem it.

Germany's Bundesbank said the euro zone crisis, which has eased as a result of the ECB's funding promises, was not over, and that it had set aside billions more euros against what it deems risky ECB moves.

Reuters/Reuters - Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh April 11, 2012. I REUTERS/Ajay Verma

The remark sent gold above $1,585 an ounce, the upside boundary of a recent trading range, on a combination of safe-haven demand and technical buying. Though the bounce may not last long as gold is still pressured by an improving economic outlook.

"The price rise yesterday will not sustain as there was no major change in fundamentals," said Chen Min, an analyst at Jinrui Futures in the southern Chinese city of Shenzhen, adding that gold is still feeling a downwards pull.

"We'll see strong influence from technicals on prices as there isn't much data on the plate this week."

Technical signals on spot gold are mixed, however, said Reuters market analyst Wang Tao, with it unclear if a wave c will extend.

Investors will be watching the all-important policy meeting of the Federal Reserve on March 19-20, to gauge the central bank's attitude towards monetary stimulus.

An exit from the stimulus would deal a heavy blow to gold, which has thrived on the demand of investors who buy gold to hedge against the inflation risks of loose monetary policies.

Spot gold was little changed at $1,592.96 an ounce at 0255 GMT, down just 0.3 percent from the $1,598.2 high of the previous session, its highest since February 28.

U.S. gold traded nearly flat at $1,592.20.

Holdings of SPDR Gold Trust, the world's biggest gold-backed, exchange-traded fund, fell for a fourth straight session to 1,236.307 tonnes on March 12, its lowest since October 2011. The outflow this year of 114.51 tonnes has more than wiped out last year's inflow of 96.25 tonnes.

Though investors remained lukewarm towards gold, large short positions in U.S. gold would add to the fuel should gold prices rise past another key technical level, as traders would be forced to close bearish positions to limit losses.

"There is a good possibility of short-covering when something happens," said Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank. (Reuters)

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Gold heads for biggest weekly rise in 4 months on Cyprus

Gold heads for biggest weekly rise in 4 months on Cyprus - Gold traded near a 3-1/2-week high on Friday, underpinned by safe-haven demand on the fear of a potential financial meltdown in Cyprus, which has put bullion on track for its biggest weekly rise in four months.

The clock is ticking for Cyprus to come up with a solution to clinch an international bailout, otherwise it could face the collapse of its financial system and likely exit from the euro zone.

The Cyprus crisis has offered gold a helping hand, after investors had been pulling out of the precious metal and piling into stock markets which have rallied this year on a brighter economic outlook.

Reuters/Reuters - Gold biscuits are displayed inside a jewellery showroom in Hyderabad April 11, 2012. REUTERS/Krishnendu Halder/Files

"Gold is likely to stay firm in the short term thanks to Cyprus," said Li Ning, an analyst at Shanghai CIFCO Futures.

"Though Cyprus is a small economy, there are concerns about the risk of contagion if the crisis there doesn't get solved properly."

Euro zone finance ministers offered a $13 billion bailout last weekend but demanded a levy on deposits in Cyprus, which shocked investors and triggered worries that similar measures could be imposed on other countries.

Spot gold was little changed at $1,613.90 an ounce by 0142 GMT, after rising to a 3-1/2-week high of $1,616.36 in the previous session. The metal was headed for a weekly gain of about 1.4 percent in its third weekly ascent, its biggest weekly rise in four months.

U.S. gold traded nearly flat at $1,613.30, on course for a 1.3 percent weekly gain.

EYES ON KEY RESISTANCE AT $1,620/OZ

Traders and analysts are eyeing key resistance at $1,620 an ounce, a price unseen since February 26. A break above that level could rekindle enthusiasm in trading.

"The slow movement in prices has really drained the interest in the market," said a Hong Kong-based trader.

"If we can break through $1,620, more people will take a look at it and think maybe there will be some momentum."

But there is considerable pressure from the continuous outflow from gold-backed exchange-traded funds. Holdings of these funds are seen as a barometer of investment interest in gold.

Holdings of SPDR Gold Trust, the world's largest gold ETF, fell 0.902 tonnes from the previous session to 1,221.26 tonnes on March 21, the lowest since July 2011. The fund is headed for a twelfth week of outflows.

Adding to the headwind, a string of U.S. data on Thursday, including on the labour market, factory activity and home sales, pointed to a growing momentum in the U.S. economy, diminishing gold's appeal as an investment vehicle during time of economic and political distress.

Meanwhile, the House of Representatives eliminated the threat of a government shutdown next week.

The new Bank of Japan governor is expected to take up aggressive tools to kick-start the world's third-largest economy in its first policy meeting early next month, which could help support sentiment in gold, a hedge against high inflation outlook brought on by rampant cash printing of central banks.

"The bar is very high now for people to buy gold based on the idea that central banks are being overactive," said the Hong Kong-based trader. "But there is still logic to the argument that it's going to be gold supportive going forward." ( Reuters )

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Gold headed for 4th day of fall as upbeat US data dents appeal

Gold headed for 4th day of fall as upbeat US data dents appeal - Gold inched lower on Wednesday in its fourth day in the red, as promising U.S. data curbed safe-haven demand, while worries about the euro zone's fiscal health after Cyprus' unprecedented rescue deal continued to support the precious metal.

Orders for long-lasting U.S.-made goods surged last month and home prices posted their biggest year-on-year gain in six-and-a-half years in January, the latest signs the U.S. economy regained momentum early in the first quarter.

Reuters/Reuters - Gold bars are displayed at South Africa's Rand Refinery in a file photo. REUTERS/Siphiwe Sibeko

Upbeat U.S. data in recent months has boosted confidence in the recovery of the world's top economy, driving investors to high-yielding assets such as equities, while little inflationary pressure has kept gold's appeal as a hedge against rising prices muted.

"It's tough to keep investors in gold, and even tougher to motivate them to buy gold," said Dominic Schnider, analyst at UBS Wealth Management in Singapore.

Gold is likely to remain in consolidation in the next few months, but an improving economic growth could fuel inflation later in the year, which would help lift gold, he said.

"When we get into the second half of the year, there will be growth and there will also be price pressure, which should give gold stimulus towards $1,800 an ounce," said Schnider.

Spot gold fell 0.4 percent to $1,592.46 an ounce by 0706 GMT, on course for a fourth session of straight losses, matching a similar run in late February and early March.

U.S. gold dropped 0.3 percent to $1,591.60.

The popular Shanghai silver forward lost nearly 2 percent to a three-month low of 5,860 yuan a tonne, and spot silver dropped to a more than three-week trough of $28.22.

Traders attributed the sharp fall to technical selling after a break below recent support levels.

"Silver had been in a range between $28.50 and $29.50 for a while, so some stops may have been triggered," said a Tokyo-based trader.

For the short term, worries about the financial stability of the euro zone after Cyprus clinched a rescue deal that forces losses on depositors and bank bond holders will keep a floor under bullion.

Reflecting the stalled momentum in gold, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,221.260 tonnes for the third session on March 26.

Activities in Asia's physical gold market slowed to a trickle as prices bounced in a small range, dealers said.

"Prices are not going anywhere and there is no buying interest," said a Singapore-based dealer.

In Thailand, retail jewellery business was bustling thanks to a strong baht, which traded near a 16-year high hit last week, though investment demand was sluggish, she added.

Platinum and palladium also faltered. Spot platinum lost 0.4 percent to $1,568.25, retreating from a two-week high of $1,601 hit earlier in the day. Spot palladium inched down 0.2 percent to $758.68. ( Reuters )

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Can You Smell Obesity?

Can You Smell Obesity? - According to the latest research, it may be on your breath. It turns out that obesity may be detectable as a gas, thanks to organisms that inhabit our gut. In a study published in the Journal of Clinical Endocrinology & Metabolism, researchers extend our knowledge about the hidden universe of the microbes that live within us to show that obesity is associated with certain populations of microbes that give off a distinctive gas.

To be more specific, obesity may smell a lot like…methane, which is to say, like not much at all, since methane in its naturally-occurring state is actually odorless. In the study. Dr. Ruchi Mathur, director of diabetes in the department of medicine at Cedars-Sinai Medical Center, and her colleagues analyzed the breath of 792 men and women of various ages. Mathur focused on detecting methane in the breath, since animal studies found that the presence of a certain family of organisms called archaea, which are older than bacteria and colonize the gut, was linked with weight gain and conveniently released small amounts of methane gas. Mathur also knew from her own work analyzing the gas makeup of the breath from bariatric surgery patients that those releasing higher levels of methane in their breath tended to have a body mass index (BMI) nearly 7 points higher on average than those with lower levels.

And sure enough, Mathur found that among the nearly 800 participants she tested, those with higher levels of methane (3 or more parts per million over 90 minutes) and hydrogen gases (20 or more parts per million) in their breath also tended to be heavier, with a BMI about 2.4 points greater than those with normal levels of the gases and about six percent more body fat on average.

“Our hope is that this is one piece of the complex puzzle that is obesity,” says Mathur, “and that by identifying people who are obese because they have this microorganism, we can manipulate and work with the gut microbiome to lead to benefits in weight loss in that subgroup.”

The culprit, she believes, is a member of archaea known as Methanobrevibacter smithii, which is present in the intestinal tract of about 70% of people, but elevated in about 30%. It’s that smaller group of individuals who might be genetically predisposed to harboring levels of M. smithii that might put them at higher risk of developing obesity. M. smithii harvests hydrogen molecules from neighboring microbes in the gut, which it then transforms into methane gas. The more it scavenges hydrogen from its environment, the more other microbes produce. But all of that activity is focused on extracting energy and nutrients from food, so along with the hydrogen gas, the microbes are also packing in more calories for the host, which can lead to weight gain. It’s also possible, says Mathur, that the release of methane slows the transit of digested food through the intestinal tract, and that could increase the time for additional calories from digested food to be absorbed and added to the body’s tally.

In order for M. smithii to thrive, it needs the hydrogen from surrounding microbes, and that may be why people with higher levels of both hydrogen and methane gases in their breath were heavier than those with elevated levels of methane or hydrogen alone.

So how does this help control the obesity epidemic? For those whose weight gain may be due in part to the activity of M. smithii, controlling the organisms with antibiotics or other medications could slow down the rate at which they pack on the pounds, and these individuals could easily be identified with a relatively simple breath test.

Mathur and her colleagues are also working with the American Diabetes Association to test a group of people with prediabetes who are overweight or obese and have elevated levels of methane in their breath. The researchers will test the participants’ glucose tolerance, the time it takes for digested food to transit through the intestinal tract, and the amount of calories in the patients’ stool. Then they volunteers will be given an antibiotic to essentially wipe out the population of M. smithii and the same parameters will be measured again, to see if eliminating the microbes will help change the patient’s weight profile and alter their trajectory toward diabetes.

She is also studying a group of children to see how early M. smithii buildup occurs, and how soon in development it starts to set up a pattern of weight gain that might then be interrupted by changing the composition of the gut microbial world. “From an evolutionary perspective, our relationship with the microorganisms that live in us has basically been symbiotic, and we have evolved together,” she says. “We’ve had that relationship for millenia, but it is just now being explored and discovered in more detail.” And, when it comes to controlling the obesity epidemic, could lead to the (sweet?) smell of success. ( Time.com )

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Doctors Detect Obesity Bug on Breath

Doctors Detect Obesity Bug on Breath - Obesity has its obvious manifestations; it's a disease that is difficult to conceal. And now, doctors say they can even smell it on your breath.

Doctors from Cedars-Sinai Medical Center in Los Angeles say certain gas-emitting microbes living in the human gut might determine one's propensity for packing on too many pounds; and the presence of methane and hydrogen on one's breath from these microbes is closely related to excess body weight and body fat.

These doctors concede that overeating and a lack of activity are the primary causes of obesity. Yet other factors — namely, the abundance or reduction of certain microbes that line the intestines, detectable on the breath — also may contribute to excessive weight gain.

Their work will appear online March 28 in the Journal of Clinical Endocrinology & Metabolism.

Hungry microbes

The concept that gut microbes are linked to obesity is not new. Dozens of papers have been written on the topic in the last few years alone. Scientists don't understand, however, which microbes are the chief culprits.

Doctors led by Ruchi Mathur, director of the Cedars-Sinai Diabetes Outpatient Treatment and Education Center, focused on a methane-producing microbe called Methanobrevibacter smithii. The theory is that M. smithii eats the hydrogen produced by other microorganisms in the gut. Lower hydrogen levels, in turn, increase fermentation in the gut, allowing the body to absorb more nutrients and more energy, or calories, from food.

"Usually, the microorganisms living in the digestive tract benefit us by helping convert food into energy," said Mathur. "However, when this particular organism, M. smithii, becomes overabundant, it may alter this balance in a way that causes someone to be more likely to gain weight."

Mathur's previous study on rats, published last year, seemed to indicate that M. smithii promoted weight gain. An abundance of M. smithii could leave detectable levels of methane on the breath of obese human subjects as smoking-gun evidence of this microbe's role in obesity, Mathur said.

Breath test

So, Mathur's group analyzed the breath of 792 people. They found that the subjects either had normal breath content, higher concentrations of methane, higher levels of hydrogen, or higher levels of both gases. Those who tested positive for high concentrations of both gases had significantly higher body mass indexes and higher percentages of body fat.

But the presence of hydrogen with methane on the breath of obese subjects may indicate that more than the methane-producing M. smithii is to blame. Or, at a minimum, the picture is complex.

Indeed, French researchers publishing a study in June 2012 in the International Journal of Obesity found that the gut microbe Lactobacillus reuteri was most associated with obese subjects in conjunction with lower, not higher, levels of M. smithii. An earlier study by some of these same French researchers, published in the journal PLOS ONE in 2009, found excess M. smithii associated with anorexia.

Mathur's group also could not ascertain cause and effect: Is obesity caused by a certain imbalance of microbes, or does a diet associated with obesity — for example, highly processed foods rich in calories and low in nutrients — change the gut microbe flora in such a way that promotes obesity. That is, the obesity bug is not something one catches randomly like the flu. The microbes most recently associated with obesity are in all human guts, along with trillions of other microbes.

What is increasingly clear, however, is that some people put on weight more easily than others. Is this entirely genetics, or gut microbes, or both? Further studies of the gut microbe flora may lead to new insights … and therapies. ( LiveScience.com )

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Pop star Bieber can't keep his clothes on at Polish airport

Pop star Bieber can't keep his clothes on at Polish airport - Teenage pop star Justin Bieber paraded through a Polish airport shirtless before flying out of the country, adding to a string of peculiar incidents that have plagued his European tour.

The Canadian singer had previously been spotted wearing a bizarre gas mask on a night out in London, where he turned up late for one concert and collapsed on stage with shortness of breath during another.

Bodyguards try to block the view of Canadian singer Justin Bieber as he goes through Wladyslaw Reymont Airport in Lodz following his concert March 25, 2013. REUTERS/Tomasz Stanczak/Agencja Gazeta

After a sold out concert in Lodz, central Poland, the 19-year-old took off his shirt in a car as it drove up to the airport late in the night on Monday.

He then walked topless to the airport building - in temperatures of about -10C (14F) - and then on to his gate, only to get dressed again before boarding a private jet.

"He wasn't told to take off his clothes. He had no metal objects on him." a spokeswoman for Lodz Airport told Reuters. "He's quite skinny so I assume he was probably freezing."

The concert's organizers put the incident down to a Bieber eccentricity.

The show in Lodz was the 19th European concert of Bieber's "Believe" tour. The next one is due to take place in Munich, Germany, on March 28.

Discovered on YouTube in 2008, Bieber is one of the pop world's biggest stars and has built up an online following of tens of millions of fans. ( Reuters )

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