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PRECIOUS-Gold falls to over 10-mnth low as Fed signals more hikes in 2017

Published 15/12/2016, 12:23 pm
© Reuters.  PRECIOUS-Gold falls to over 10-mnth low as Fed signals more hikes in 2017
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Dec 15 (Reuters) - Gold prices fell on Thursday to a new low in more than 10 months as the dollar surged after the U.S. central bank raised interest rates for the first time in a year and signalled further rate hikes for 2017.

FUNDAMENTALS

* Spot gold XAU= edged 0.4 percent lower to $1,139.54 an ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an ounce, its lowest since Feb. 3. The yellow metal fell over one percent in the prior session.

* U.S. gold futures GCcv1 fell nearly 2 percent to $1,141.80 per ounce. The prices fell to $1,136.4 an ounce earlier in the session to their lowest since Feb. 1 and registered their biggest percentage fall in one month.

* The dollar index .DXY , which measures the greenback against a basket of currencies, was up 0.7 percent at 102.490. The dollar hovered near a 14-year peak against a basket of major currencies on Thursday. USD/

* The U.S. Federal Reserve raised interest rates on Wednesday and signalled a faster pace of increases in 2017 as central bankers adapted to the incoming Trump administration's promises of tax cuts, spending and deregulation. U.S. retail sales barely rose in November and industrial production recorded its biggest drop in eight months, suggesting some loss of momentum in economic growth in the fourth quarter. Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.80 percent to 849.44 tonnes on Wednesday. GOL/ETF

* Human rights groups on Wednesday welcomed a decision by Thailand to close the country's only active gold mine by the end of the year as the mine's operator said it had laid off the employees. The amount of gold dug up by people working informally in Mali could soon rival official production thanks to demand from domestic refineries, officials in the West African nation say. Turquoise Hill Resources Ltd TRQ.TO said on Wednesday it had resumed concentrate shipments from its giant copper-gold Oyu Tolgoi mine in Mongolia following talks with Chinese and Mongolian authorities. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

0800 France

Markit manufacturing flash PMI December

0830 Germany

Markit manufacturing flash PMI December

0900 Euro zone

Markit manufacturing flash PMI December

0930 Britain

Retail sales

November

1200 Bank of England interest rate decision

1330 U.S.

Consumer prices

November

1330 U.S.

Current account

Q3

1330 U.S.

New York Fed manufacturing

December

1330 U.S.

Weekly jobless claims

1330 U.S.

Philly Fed business index

December

1500 U.S.

NAHB housing market index

December

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