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PRECIOUS-Gold, silver, platinum at multi-year lows on robust dollar, Fed view

Published 24/11/2015, 11:48 am
© Reuters.  PRECIOUS-Gold, silver, platinum at multi-year lows on robust dollar, Fed view
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SINGAPORE, Nov 24 (Reuters) - Gold languished near its lowest level in nearly six years on Tuesday, while silver and platinum also held near multi-year lows on a strong dollar and increasing expectations that the Federal Reserve would increase U.S. interest rates next month.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,069.67 an ounce by 0042 GMT, after losing 0.8 percent in the previous session. The metal had fallen to $1,064.95 last week, its lowest since February 2010.

* U.S. gold GCcv1 was also near a six-year low of $1,062 reached last week.

* Silver XAG= steadied after slumping to $13.86 on Monday, the lowest since August 2009. Platinum XPT= was close to $839.50 reached in the previous session, its lowest since December 2008.

* The precious metals have been hit by strength in the dollar and expectations that the Fed would hike rates in December for the first time in nearly a decade.

* Demand for bullion and the other metals that do not pay any interest could be hurt by higher rates.

* San Francisco Fed President John Williams on Saturday cited a "strong case" for raising rates when Fed policymakers meet next month, as long as U.S. economic data does not disappoint, echoing other officials. Nonfarm payrolls data earlier this month also supported views of a strong economy.

* The dollar rose to an eight-month high on Monday on hopes of a hike next month. USD/ A strong greenback makes dollar-denominated gold and other metals more expensive for holders of other currencies.

* Investors have been pulling out of precious metals funds at a rapid pace, further hurting sentiment.

* Assets in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.77 percent to 655.69 tonnes on Monday, the lowest since September 2008.

* Holdings of platinum ETFs HLDTOTALL=XPT are at a two-year low, while assets in palladium funds HLDTOTALL=XPD are close to their lowest since April 2014. urn:newsml:reuters.com:*:nENN3TFHKJ

* For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* World equity markets slipped on Monday, with U.S. stocks ending slightly lower in quiet trading after strong gains last week.

DATA AHEAD (GMT)

0700 Germany Detailed GDP Q3

0745 France Business climate Nov

0900 Germany Ifo business climate Nov

1330 U.S. GDP second estimate Q3

1330 U.S. Trade data Oct

1400 U.S. S&P/Case-Shiller housing index Sep

1500 U.S. Consumer confidence Nov

PRICES AT 0042 GMT Metal

Last

Change Pct chg

Spot gold

1069.67

0.73

0.07 Spot silver

14.13

0.02

0.14 Spot platinum

843.7

3.7

0.44 Spot palladium

538

1.25

0.23 Comex gold

1069.1

2.3

0.22 Comex silver

14.085

0.053

0.38

COMEX gold and silver contracts show the most active months

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