PRECIOUS-Gold near Multi-year Lows as U.S. Data Supports Rate Hike View

Image: PRECIOUS-Gold near Multi-year Lows as U.S. Data Supports Rate Hike View

Wednesday, 25 Nov 2015 08:04 PM

SINGAPORE, Nov 26 (Reuters) - Gold hovered close to its lowest in nearly six years on Thursday, as the dollar held at multi-month highs and U.S. economic data reinforced market expectations of an interest rate hike this year. FUNDAMENTALS * Spot gold was little changed at $1,070.80 an ounce by 0031 GMT, after dropping 0.4 percent on Wednesday. The metal had fallen to $1,064.95 last week, the lowest since February 2010. * Data on Wednesday showed that U.S. manufacturing output rose well above economists' expectations in October, while business spending plans surged. New applications for unemployment benefits dropped last week. * Though other data showed only a small increase in U.S. consumer spending in October, it did little to alter views that the economy was strong enough for the Federal Reserve to raise rates at its next policy meeting in December. * Higher rates would dent the appeal of non-interest-paying bullion, while boosting demand for the dollar. * The dollar climbed to its highest in eight months against a basket of major currencies on Wednesday on the robust U.S. data. * A stronger greenback makes dollar-denominated gold expensive for holders of other currencies. * Gold had seen some safe-haven bids earlier in the week after Turkey downed a Russian fighter jet, stoking tensions between the two countries, but have faded since as investors fretted over the U.S. rate hike. * Any worsening of tensions could see investors seeking safety in bullion. Russia sent an advanced missile system to Syria on Wednesday to protect its jets operating there and pledged its air force would keep flying missions near Turkish air space. * Exchanges, brokers and data vendors are interested in providing clearing or reporting services to make the gold market more liquid and transparent, the London Bullion Market Association said on Wednesday. * The U.S. Mint said on Wednesday that it would begin sales of 2015 American Eagle platinum proof coins on Dec. 3 but would not produce 2015 platinum bullion coins this year due to a lag in obtaining a sufficient amount of blanks. * For the top stories on metals and other news, click or MARKET NEWS * Asian shares advanced in early trade on Thursday, while growing bets the European Central Bank was gearing up to deliver further stimulus steps kept the euro under pressure. DATA AHEAD (GMT) No major data on tap for Thursday. U.S. markets shut for Thanksgiving holiday. PRICES AT 0031 GMT Metal Last Change Pct chg Spot gold 1070.8 -0.21 -0.02 Spot silver 14.16 0.01 0.07 Spot platinum 843.45 4.71 0.56 Spot palladium 558.45 4.2 0.76 Comex gold 1070.4 0.4 0.04 Comex silver 14.15 -0.008 -0.06 COMEX gold and silver contracts show the most active months (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)

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Wednesday, 25 Nov 2015 08:04 PM
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