• Gold traders are the most bearish in more than a year on mounting speculation that improving economic growth from the U.S. to China will curb demand for this year’s worst-performing precious metal.
• Gold slid 0.2 percent to $1,632.30 an ounce, the lowest intraday level since Jan. 4, after filings showed billionaire investors George Soros and Louis Moore Bacon cut stakes in exchange-traded products in the fourth quarter. Traders are the most bearish on gold in more than a year, according to a Bloomberg survey.
• First-time jobless claims in the U.S. decreased more than estimated last week, while a Chinese government-backed survey showed manufacturing expanded in January.
• In U.S. economic news, initial claims for jobless benefits fell by 27,000 last week to 341,000 claims. Economists expected a decrease of just 6,000. The less volatile four-week moving average rose by 1,500 to 352,500.
• Even as the recession in Europe deepened more than economists forecast last quarter and Japan’s economy shrank, the International Monetary Fund predicts global growth will climb to 3.5 percent this year from 3.2 percent in 2012.
• Gross domestic product in the euro area shrank 0.6 percent in the fourth quarter from the previous three months, the worst performance since the first quarter of 2009. Japanese GDP declined for a third straight quarter.
• Adding to the selling pressure on the euro and thereby gold, other reports showed Germany’s fourth-quarter GDP contracted by 0.6%, below expectations calling for a 0.5% drop. France’s fourth-quarter GDP shrank 0.3% while Italy’s contracted by 0.9%.
• Gold generally earns returns only through price gains and some investors buy it as a hedge against inflation and currency declines. While consumer-price gains are below the Fed’s 2 percent target, inflation expectations measured by the break- even rate for five-year Treasury Inflation Protected Securities rose 13 percent this year and reached a four-month high Feb. 6.
• Buying also may pick up as China’s markets open after this week’s New Year holiday. China accounted for about 25 percent of consumer gold demand last year and narrowed the gap between top buyer India to the smallest ever, the London-based World Gold Council said yesterday. The group said consumption from both countries may rise at least 11 percent in 2013.
• Central banks from Brazil to Russia are buying more gold to diversify from currency holdings. They added 534.6 tons to reserves last year, 17 percent more than in 2011 and the most since 1964, the council said yesterday.
• Weak euro zone growth data dampened sentiment in markets from Asian shares to copper to gold, while the yen was jittery as investors awaited news from the G20′s Moscow meeting.
• Japan’s debt yields are the lowest in seven months relative to its major economic peers as a surprise contraction in the world’s third-largest economy cements expectations the central bank will print more money.
• Japan’s lower yields underscore expectations the central bank will still be bolstering monetary stimulus to end deflation as its peers put the brakes on easing.
• Earlier this week, the G7 nations of which Japan is a member, pledged to let markets determine exchange rates, though some rival export-dependent nations may view Japan as only paying lip service to markets setting exchange rates.
• The U.S. dollar was spotted higher against most of its major rivals during Friday’s Asian session as traders looked for safe-haven currencies following a spate of glum economic data points out of Europe and ahead of the G20 meeting. The summit starts later today in Moscow and runs through Saturday.
• West Texas Intermediate oil headed for its ninth weekly gain in 10 weeks after a report signaled OPEC will cut crude shipments this month. Open interest for the U.S. benchmark grade rose to a record.
• The U.S. on Friday will release data on manufacturing activity in New York state and industrial production, while the University of Michigan is to release preliminary data on consumer sentiment and inflation expectations.

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