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PRECIOUS-Gold down on U.S. rate hike expectations; ECB meeting in focus

Published 07/12/2016, 12:06 pm
Updated 07/12/2016, 12:20 pm
© Reuters.  PRECIOUS-Gold down on U.S. rate hike expectations; ECB meeting in focus
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Dec 7 (Reuters) - Gold edged down early on Wednesday ahead of an expected U.S. Federal Reserve rate hike next week and as markets waited for clues on the future of the European Central Bank's asset purchase program.

FUNDAMENTALS

* Spot gold XAU= was down 0.2 percent at $1,167.56 an ounce by 0036 GMT. The yellow metal ended the previous session nearly flat.

* U.S. gold futures GCcv1 were nearly flat at $1,170.30.

* The euro and dollar drifted sideways early on Wednesday as a wait-and-see mood prevailed ahead of Thursday's European Central Bank policy meeting, which may set the tone in a post-Trump rally currency market. USD/

* The euro was boosted last Friday by news that the ECB, while possibly extending its bond purchases beyond next March, may consider sending a formal signal that the asset purchase program will eventually end. The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in October as exports of soybeans and other products fell, suggesting trade would be a drag on growth in the fourth quarter. Total U.S. Mint sales of 2016-dated American Eagle silver bullion coins fell 20 percent from a record in 2015 to the lowest in four years, a spokesman said on Tuesday after this year's supply sold out. Japanese manufacturers' confidence rose for a fourth straight month to a 16-month high in December and the service sector's mood also rose, a Reuters poll showed, with a weaker yen brightening prospects for exporters. China will rein in risks from "irrational" outbound investment deals, although the government will stick to its opening up policy, Xinhua news agency said on Tuesday, citing a variety of officials. Russia's Petropavlovsk POG.L CEO Pavel Maslovskiy told Reuters that the company sees gold price at $1,150 per troy ounce in its conservative scenario in 2017. Latin America will play an increasingly important role in Barrick Gold's ABX.TO growth strategy, the world's biggest gold miner said on Tuesday as it named a new director with decades of mining experience in that region. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

0700 Germany

Industrial output

Oct

0745 France

Current account

Oct

0745 France

Trade data

Oct

0930 Britain

Industrial output

Oct

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