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PRECIOUS-Gold holds gains as dollar steadies

Published 28/12/2016, 12:18 pm
© Reuters.  PRECIOUS-Gold holds gains as dollar steadies
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Dec 28 (Reuters) - Gold was little changed early on Wednesday, after rising to a near two-week high in the previous session, amid a steady dollar.

FUNDAMENTALS

* Spot gold XAU= edged 0.1 percent higher to $1,139.56 an ounce by 0058 GMT. The bullion hit its strongest since Dec. 14 on Tuesday at $1,148.98.

* U.S. gold futures GCcv1 were up 0.2 percent at $1,140.60 per ounce.

* The dollar index .DXY , which measures the greenback against a basket of currencies, was flat at 103.

* The dollar edged up against the yen on Wednesday within sight of a 10-1/2 month high in thin holiday trade, after strong U.S. economic data reinforced expectations that the U.S. Federal Reserve would be more hawkish in the year ahead. USD/

* U.S. consumer confidence shot to its highest in more than 15 years in December as Americans saw more strength ahead in business conditions, stock prices and the job market following the election of Donald Trump as president in November. Holdings of the SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, continued to fall on Wednesday, fell 0.14 percent to 823.36 tonnes on Tuesday. GOL/ETF

* Japan's factory output rose in November and manufacturers expect to ramp up production in coming months, data showed on Wednesday. The figures reinforce a dominant market view that the Bank of Japan will hold off on expanding monetary stimulus in coming months with a recent rebound in exports seen supporting growth.

* China's industrial sector showed the strongest profit growth in three months in November, suggesting the world's second-largest economy was improving, though policymakers noted gains were too dependent on rebounding prices for oil products, iron and steel. Chinese firms reported strong performance in the fourth quarter, with hiring on the rise and profits up, but the outlook for 2017 is uncertain as cash flow remains weak and inventories rose at a record pace in late 2016, a private survey showed. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

1500

U.S.

Pending home sales

November

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