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PRECIOUS-Gold holds overnight losses on firmer dollar

Published 12/08/2016, 11:13 am
Updated 12/08/2016, 11:20 am
© Reuters.  PRECIOUS-Gold holds overnight losses on firmer dollar
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Aug 12 (Reuters) - Gold held on to its losses from the previous session early on Friday, after the dollar rose on expectations of a rate hike by the U.S. Federal Reserve this year.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,339.30 an ounce at 0107 GMT, having fallen about 0.6 percent on Friday.

* U.S. gold GCcv1 was down 0.4 percent at $1,345 an ounce.

* The U.S. dollar .DXY rose 0.1 percent to 95.959 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

* The U.S. Fed is likely to raise interest rates in December, after the Nov. 8 presidential election, according to a Reuters poll that also predicted a pick-up in economic growth but with still relatively subdued inflation. The central bank should raise interest rates further this year, San Francisco Fed President John Williams said in an interview published on Thursday. Britain's decision to quit the European Union has already begun tipping its economy into a mild recession, according to economists in a Reuters poll, most of whom said the Bank of England would chop interest rates again in November. Market speculators betting on more monetary easing in China will probably be disappointed, state media Xinhua said in an editorial late Wednesday. Investment demand for gold reached record first-half levels this year, a World Gold Council report showed on Thursday. India's gold demand may rise in the second half of 2016 after falling to the lowest in seven years in the first half as beneficial monsoon rains will spur rural demand during the peak festive season, the World Gold Council 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

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

DATA AHEAD (GMT)

0200 China Industrial output July

0200 China Retail sales July

0200 China Urban investment July

0600 Germany GDP flash estimate Q2

0600 Germany Wholesale price index July

0900 Euro zone GDP flash estimate Q2

0900 Euro zone Industrial production June

1230 U.S. Retail sales July

1400 U.S. Business inventories June

1400 U.S. Univ of Michigan sentiment index August

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