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PRECIOUS-Gold ekes out gains, languishes near 2010 low

Published 18/11/2015, 07:54 pm
© Reuters.  PRECIOUS-Gold ekes out gains, languishes near 2010 low
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* Silver up slightly after hitting 2-1/2-month low

* Expectations of U.S. rate hike in December support dollar

BEIJING, Nov 18 (Reuters) - Gold eked out small gains on Wednesday as another bomb scare in Europe and gunfire in Paris fuelled tentative safe-haven bids, but a firm dollar kept a lid on prices that hit their lowest in nearly six years earlier in the session.

Silver XAG= tracked bullion, returning to positive territory after dropping to a 2-1/2-month low, while platinum XPT= languished at a seven-year low.

Spot gold XAU= was up 0.07 percent at $1,071.4 an ounce at 0752 GMT, after falling to $1,064.95 earlier, the lowest since February 2010. U.S. gold futures GCZ5 for December delivery were up 0.11 percent at $1,069.7.

Bullion prices have fallen for 14 out of 16 sessions under pressure from expectations that the U.S. Federal Reserve is set to raise interest rates next month.

Data on Tuesday showing U.S. consumer prices increased in October further fuelled those expectations. urn:newsml:reuters.com:*:nL1N13C0UU

But bullion managed to regain some lost ground late in Asia trading as the dollar eased slightly to 99.477 against a basket of currencies .DXY . This, however, was not too far off its 7-month highs of 99.756 hit earlier in the session. FRX/

"We saw a pop in the last few days, but the knee jerk reaction didn't really last. The overriding factor has been the rising dollar and the expectation of Fed hiking rates in December," said Victor Thianpiriya, analyst at ANZ.

However, heightened security concerns in Europe after Friday night's attacks in Paris in which 129 people were killed continue to underpin gold's safe-have appeal.

German authorities called off a soccer game which Chancellor Angela Merkel was due to attend, citing threats of bombing, while two Air France flights to Paris from the United States have been diverted. urn:newsml:reuters.com:*:nL3N13D24J

Gunfire also erupted in a north Paris suburb early on Wednesday as special police forces launched an operation to catch one of the suspects believed to be behind last week's gun and bomb attacks. urn:newsml:reuters.com:*:nL1N13D08U

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