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PRECIOUS-Gold marks time ahead of Fed minutes

Published 19/08/2015, 10:53 am
PRECIOUS-Gold marks time ahead of Fed minutes
XAU/USD
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C
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GLEN
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MANILA, Aug 19 (Reuters) - Gold was steady in Asian trade on Wednesday as investors awaited the minutes from the Federal Reserve's meeting last month for clues on whether the U.S. central bank would raise interest rates as early as next month.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,116.80 an ounce by 0030 GMT, extending Tuesday's lethargic performance.

* U.S. gold for December delivery GCcv1 was also little changed at $1,116.10 an ounce.

* U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, bolstering the view that the Fed will hike rates in September. ID:nL1N10T0N1

* A recovering housing sector, a strengthening jobs market and other upbeat economic signals show the U.S. central bank is on track to raising interest rates this year. But some analysts say it might adopt a gradual approach after the first hike after China's shock devaluation of its currency last week.

* The imminent hike in U.S. interest rates would be the first since 2006 and has dimmed the appeal of non-interest bearing assets such as gold.

* Citigroup (NYSE:C) cut its gold price forecasts for this year and next, citing weak economic conditions and fundamentals. The bank lowered its 2015 average gold price forecast to $1,140 from $1,180 per ounce and for 2016 to $1,050 from $1,195. ID:nL3N10T2LZ

* Miner and commodity trader Glencore GLEN.L is considering closing its Eland platinum mine in South Africa due to falling prices. ID:nL5N10T27F

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

MARKET NEWS

* The dollar was trading near a one-week high versus a basket of currencies, with bulls waiting for the Fed minutes as well as U.S. consumer inflation data. USD/

* Asian shares struggled to move away from two-year lows after big falls in Chinese shares the previous session raised fresh fear about the stability of China's economy. MKTS/GLOB

DATA/EVENT AHEAD (GMT)

0800 Euro zone

Current account

Jun

1230 U.S.

Consumer prices

Jul

1530 U.S.

Cleveland Fed CPI

Jul

1800 Federal Reserve releases minutes of July 28-29 meeting

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