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PRECIOUS-Gold edges up after 2-day drop in pre-holiday trade

Published 24/12/2015, 11:51 am
© Reuters.  PRECIOUS-Gold edges up after 2-day drop in pre-holiday trade
XAU/USD
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GC
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SINGAPORE, Dec 24 (Reuters) - Gold rose only slightly on Thursday, after two days of losses, as the metal struggled to find direction in thin pre-holiday trade amid conflicting cues from the currency, equities and energy markets.

FUNDAMENTALS

* Spot gold XAU= rose 0.2 percent to $1,072.10 an ounce by 0037 GMT, after losing 0.7 percent in the last two sessions.

* Many financial centres around the world will shut early on Thursday and stay closed on Friday for the Christmas holidays. Some will remain shut on Monday.

* On Wednesday, Wall Street rallied, U.S. Treasury yields rose and the dollar edged up after a three-day losing streak.

* Strong equities and dollar typically suppress demand for safe-haven gold.

* But the metal found some support in the energy markets, as oil rose more than 3 percent on Wednesday following a drop to multi-year lows earlier in the week. O/R

* Gold is positively correlated to oil as the metal is seen as a hedge against oil-led inflation.

* Mixed U.S. economic data also did not help gold find direction.

* New orders for U.S. manufactured capital goods fell in November and the prior month's increase was revised sharply lower. But other data on Wednesday showed consumer sentiment at a five-month high in December and personal income rising for an eighth straight month in November. urn:newsml:reuters.com:*:nL1N14C0P5

* Gold prices have shed 9 percent so far this year, a third year of losses, mostly due to expectations the U.S. Federal Reserve would raise interest rates, which it did this month.

* With the first U.S. rate increase in nearly a decade out of the way, the focus is now on the pace of future hikes.

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

MARKET NEWS

* The dollar, euro and yen got off to a subdued start on Thursday in what is likely to be a languid session with much of the Western world already shuttered for the Christmas and year-end holidays.

DATA AHEAD (GMT)

1330 U.S. Weekly jobless claims

PRICES AT 0037 GMT Metal

Last

Change Pct chg

Spot gold

1072.1

2

0.19 Spot silver

14.33

0.035

0.24 Spot platinum

870.62

3.25

0.37 Spot palladium

551.47

-0.43

-0.08 Comex gold

1071.4

3.1

0.29 Comex silver

14.325

0.038

0.27

COMEX gold and silver contracts show the most active months

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