Gold gains as German, French data boost euro | Reuters

opes of stimulus measures keep gold investors’ mood up

* Spot gold neutral in $1,605.2-$1,627/oz range – technicals

* Coming up: EZ GDP flash estimate, Q2; 0900 GMT

(Adds details, comments; writes through; updates prices)

By Rujun Shen

SINGAPORE, Aug 14 (Reuters) – Gold rose on Tuesday, tracking

a firm euro, as a slightly better-than-expected growth data from

Germany and France helped ease concerns about the two biggest

economies of the euro zone.

Bullion was also aided by hopes that central banks from the

United States, Europe to China will launch stimulus measures to

buoy their economies, which will boost the inflation outlook and

lure investors to gold, seen as a good hedge against inflation.

Spot gold rose 0.4 percent to $1,615.20 an ounce by

0736 GMT, after losing 0.6 percent in the previous session.

U.S. gold futures contract for December delivery

inched up 0.3 percent to $1,617.80.

“There is the perception of central bank easing, but there

is also the risk that people may be disappointed,” said Nick

Trevethan, senior commodity strategist at ANZ in Singapore,

adding that the U.S. Federal Reserve might save the quantitative

easing tool for more dire economic conditions.

“These stimulus measures have a diminishing effect. Are you

going to waste the last bullet until it is absolutely necessary?

Definitely not.”

Market participants are now wa

via PRECIOUS-Gold gains as German, French data boost euro | Reuters.

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