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PRECIOUS-Gold drops for 4th session on recovery in stock markets

Published 13/01/2016, 11:25 am
© Reuters.  PRECIOUS-Gold drops for 4th session on recovery in stock markets
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SINGAPORE, Jan 13 (Reuters) - Gold lost more ground on Wednesday as a rebound in U.S. and European equity markets reduced some of the precious metal's safe haven appeal with additional pressure from a strengthening greenback.

FUNDAMENTALS

* Spot gold XAU= slid 0.3 percent to $1,086.9 an ounce by 0011 GMT and U.S. gold futures GCcv1 gained 0.1 percent to $1,086.7.

* A late rebound in energy and biotech shares helped push the S&P 500 to a second straight day of gains on Tuesday, while Apple (O:AAPL) and other technology shares also boosted the market. The pan-European FTSEurofirst 300 index .FTEU3 climbed 1.1 percent after four sessions of declines.

* The metal's rally in early January to a nine-week top has run out of steam as expectations of further U.S. interest rate increase lowers demand for the non-interest-paying asset, while boosting the dollar.

* The dollar rose for a third straight session on Tuesday as gains on Wall Street and calmer financial markets enhanced appetite for currencies that offer higher yield.

* The Fed raised rates in December and attention has shifted to how many hikes will follow in 2016.

* Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares (N:GLD), rose 2.1 tonnes on Monday, data from the fund showed. GOL/ETF

* Among other precious metals, palladium XPD= fell for a third straight session to $467.30 an ounce after sliding to a 5-1/2 year low of $449.55 an ounce on Tuesday.

* Silver XAG= was almost unchanged at $13.795 an ounce, while platinum XPT= lost 0.2 percent to $835.1 an ounce.

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

MARKET NEWS

* U.S. and European stock investors bought beaten-down shares on Tuesday, at least temporarily looking past another steep drop in oil prices that briefly sent U.S. crude below $30 a barrel. MKTS/GLOB

* Oil fell briefly below the widely watched $30-per-barrel level on Tuesday, extending a selloff that has sliced almost 20 percent off prices this year amid deepening concerns about fragile Chinese demand and the absence of output restraint. O/R

DATA AHEAD (GMT) China Trade data Dec 1000 Euro zone Industrial output Nov 1900 U.S. Federal budget Dec *No exact timing for China trade data

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