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PRECIOUS-Gold extends losses as dollar, stocks rise

Published 28/09/2016, 11:36 am
© Reuters.  PRECIOUS-Gold extends losses as dollar, stocks rise
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Sept 28 (Reuters) - Gold eased early on Wednesday, extending losses from the previous session when it dropped nearly 1 percent, as Asian stocks rose and the dollar index firmed.

FUNDAMENTALS

* Spot gold XAU= fell 0.1 percent to $1,325.81 an ounce by 0109 GMT.

* U.S. gold futures GCcv1 eased 0.1 percent to $1,329.30 an ounce.

* The dollar index .DXY , which measures the greenback against a basket of six major currencies, was up 0.14 percent.

* Asian stocks edged up early on Wednesday following an overnight rise for U.S. stocks. MKTS/GLOB

* A perceived win by Democrat Hillary Clinton in Monday's first presidential debate gave broader support to equities. Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.22 percent to 949.14 tonnes on Tuesday. GOL/ETF

* U.S. single-family home prices rose slightly less than expected on an annual basis in July, and the year-over-year gain was smaller than in the prior month, a survey showed. U.S. consumer confidence improved, while the service sector survey also came in better than expected. The World Trade Organization cut its forecast for global trade growth this year by more than a third on Tuesday, reflecting a slowdown in China and falling levels of imports into the United States. Top consumer China's net gold imports via main conduit Hong Kong slid about 45 percent in August to the lowest in six months, dragged down by a decline in retail demand for physical gold, data showed on Tuesday. Australian miner OceanaGold Corp OGC.AX said it had not received an order from a Philippine mining agency to suspend its operations in the country and that activity at its gold-copper mine was continuing.

The Philippines, on Tuesday, ordered the suspension of 20 more mines for environmental violations. Among those ordered suspended was OceanaGold, the top gold producer in the Southeast Asian nation. Russia's Sberbank CIB, the corporate and investment banking business of Russia's largest lender Sberbank SBER.MM , has been granted international membership of the Shanghai Gold Exchange. Sberbank CIB expects to supply 50-60 tonnes of bullion into the Asia region in 2017. Ghana's gold output rose 38.6 percent in the first half of 2016 to 1,993,850 ounces from 1,438,656 ounces a year ago, boosted mainly by new mining operations. For the top stories on metals and other news, click TOP/MTL or GOL

DATA/EVENT AHEAD (GMT)

0600 Germany

GfK consumer sentiment

October

0645 France

Consumer confidence

September

1230 U.S.

Durable goods

August

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