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PRECIOUS-Gold flat on firmer dollar; seen range-bound

Published 12/08/2016, 04:55 pm
© Reuters.  PRECIOUS-Gold flat on firmer dollar; seen range-bound
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* Gold seen range-bound at $1,344-$1,349 - Technicals

* Dollar gets support from Fed official's comments (Updates prices)

By Sethuraman N R

Aug 12 (Reuters) - Gold remained little changed on Friday, hovering near lows touched in the previous session, as the dollar stayed firm on expectations of a rate hike by the U.S. Federal Reserve this year.

Spot gold XAU= was flat at $1,338.07 an ounce by 0636 GMT. It ended down 0.6 percent at $1,338.39 on Thursday. The metal, however, was on track for a weekly gain.

U.S. gold GCcv1 slipped 0.4 percent at $1,344.1 an ounce.

"The market is waiting for more cues on a U.S. rate hike. There is a big mix of data with some being supportive and some being not," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Spot gold may bounce moderately in a narrow range of $1,344-$1,349 per ounce, before retesting support at $1,335, as suggested by its wave pattern and a Fibonacci projection analysis, Reuters technical analyst Wang Tao said. the moment it looks like gold is being squeezed into a 1330-1360 consolidation form with a slight short-term negative bias," trading firm MKS Pamp said in a note.

The U.S. Fed is likely to raise interest rates in December, after the Nov. 8 presidential election, according to a Reuters poll. firm dollar was supported by comments from San Francisco Fed President John Williams that suggested a U.S. interest rate increase this year is still a real possibility as inflation pressures grow. stronger dollar discourages gold buying by making it more expensive in other currencies.

The U.S. dollar .DXY was at 95.931 against a basket of currencies, while Asian stocks rose slightly in early Friday trade, taking a cue from Wall Street's records overnight. USD/ MKTS/GLOB

"Gold should hold steady above $1,300. There could be a knee-jerk reaction on a rate hike. But, overall global economic situation is still favouring the metal," a China based trader said.

Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.03 percent to 972.32 tonnes on Thursday. GOL/ETF

Platinum XPT= climbed 0.4 percent at $1,142 an ounce, after falling 3 percent in the previous session. Palladium XPD= remained stable at $688.20, after tumbling 5 percent on Thursday.

"A further move lower in the platinum group metals could trigger a move below $1,330 for gold in the next few days," MKS Pamp said.

Spot silver XAG= was flat at $19.93 an ounce.

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