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PRECIOUS-Gold firms near $1,110 but poised for third weekly drop

Published 11/09/2015, 10:35 am
Updated 11/09/2015, 10:37 am
© Reuters. PRECIOUS-Gold firms near $1,110 but poised for third weekly drop
XAU/USD
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BNPP
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SINGAPORE, Sept 11 (Reuters) - Gold clung to small overnight gains near $1,110 an ounce on Friday, but the metal was headed for a third consecutive weekly fall as investors continued to fret over the timing of a looming U.S. interest rate hike.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,111 an ounce by 0025 GMT, after gaining 0.5 percent in the previous session.

* Earlier in the week, gold had fallen to $1,101.11, the lowest since Aug. 11. It has lost 1 percent for the week.

* U.S. gold GCcv1 , also headed for a third weekly dip, was trading at $1,110.40.

* Traders were awaiting the Federal Reserve's next policy statement on Sept. 17 for clues on the timing of a U.S. interest rate rise, before taking any big positions in gold.

* Concerns over slowing growth in China, mixed economic data and volatility in financial markets have increased uncertainty about the timing of a U.S. rate increase, which had been expected as early as this month.

* Data on Thursday showed the U.S. labour market appeared to gain momentum in early September as fewer Americans filed for weekly unemployment benefits, but weak inflation pressures may complicate the Fed's decision whether to raise interest rates. ID:nL4N11H01V

* Bullion has benefited in recent years from ultra-low rates, which cut the opportunity cost of holding bullion while holding the dollar in check. But expectations that rates will rise soon have pushed the metal down 6 percent this year.

* BNP Paribas (PARIS:BNPP) SA revised its gold price forecast for 2015 on Thursday, citing strength in the U.S. dollar and concerns over the Chinese economy. The bank cut its price forecast by $15 to $1,145 per ounce in 2015. ID:nL4N11G4BF

* The London Metal Exchange is in talks with the gold industry with a view to launching precious metals derivatives, LME Chief Executive Garry Jones said on Thursday. ID:nL5N11G2ZG

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

MARKET NEWS

* Asian shares rose on Friday thanks to gains on Wall Street, while the dollar steadied after facing pressure from a rallying yuan and U.S. data that offered no clarity on whether the Fed might raise interest rates next week. MKTS/GLOB

DATA AHEAD (GMT)

0600 Germany Wholesale price index Aug

0645 France Current account Jul

1230 U.S. Producer prices final Aug

1400 U.S. Univ of Michigan sentiment index Sep

PRICES AT 0025 GMT Metal

Last

Change Pct chg

Spot gold

1111

-0.15

-0.01 Spot silver

14.69

0.02

0.14 Spot platinum

983

5

0.51 Spot palladium

586.85

-0.85

-0.14 Comex gold

1110.4

1.1

0.1 Comex silver

14.685

0.04

0.27 Euro

1.1279

DXY

95.537

COMEX gold and silver contracts show the most active months

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