SINGAPORE, Oct 30 (Reuters) - Gold held near its lowest in three weeks on Friday and looked set to post its worst week in two months on expectations that the Federal Reserve would raise U.S. rates this year.
FUNDAMENTALS
* Spot gold XAU= was steady at $1,146.26 an ounce by 0032 GMT, not far from a three-week low of $1,144.20 in the previous session.
* Bullion is down 1.4 percent for the week, the sharpest decline since the week ended Aug. 28.
* The metal has been under pressure after the Fed on Wednesday surprised with a direct reference to its next policy meeting as a possibility for the first U.S. rate hike in nearly a decade.
* The Fed said raising rates at its next meeting would depend on progress made on employment and inflation, and omitted any reference to global developments affecting U.S. economic activity.
* Gold had rallied earlier this month on speculation that the softness in the global economy could prompt the U.S. central bank to delay the rate hike to next year. The hawkish tone on Wednesday triggered a sell-off in the metal.
* The strength in the dollar also hurt gold. The greenback climbed to a 2-1/2-month high on Wednesday after the Fed, though it has since given back some of those gains. USD/
* Investors will be watching the Bank of Japan's monetary policy decision due later in the day for trading cues. The BOJ is expected to hold monetary policy steady even while diluting its rosy inflation forecasts, sources say. urn:newsml:reuters.com:*:nL3N12T27F
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* Stock markets around the world fell and bond yields rose as investors weighed the implications that a U.S. interest rate rise before the end of the year would have for the global economy and markets. MKTS/GLOB
DATA AHEAD (GMT)
0700 Germany Retail sales Sep
0745 France Consumer spending Sep
1000 Euro zone Inflation Oct
1000 Euro zone Unemployment rate Sep
1230 U.S. Personal consumption Sep
1230 U.S. Employment wages Q3
1345 U.S. Chicago PMI Oct
PRICES AT 0032 GMT Metal
Last
Change Pct chg
Spot gold
1146.26
0.75
0.07 Spot silver
15.61
0.05
0.32 Spot platinum
985.49
-4.01
-0.41 Spot palladium
669.5
1.5
0.22 Comex gold
1146.2
-1.1
-0.1 Comex silver
15.605
0.055
0.35
COMEX gold and silver contracts show the most active months