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PRECIOUS-Gold on back foot as dollar stays near 14-year high

Published 21/12/2016, 12:12 pm
© Reuters.  PRECIOUS-Gold on back foot as dollar stays near 14-year high
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Dec 21 (Reuters) - Gold extended its losses on Wednesday after dipping in the previous session, dragged down as the U.S. dollar stayed near 14-year highs against a basket of currencies.

FUNDAMENTALS

* Spot gold XAU= was down 0.1 percent at $1,131.01 an ounce by 0053 GMT. It fell 0.6 percent the day before.

* U.S. gold futures GCcv1 were also 0.1-percent lower, at $1,133 per ounce.

* The U.S. dollar was encamped near 14-year peaks on Wednesday as global yield spreads moved inexorably in its favour, while a falling yen lifted Japanese shares to a one-year top. MKTS/GLOB

* The dollar index .DXY , which measures the greenback against a basket of currencies, stood at 103.270, having touched 103.65 on Tuesday, its highest since December 2002. USD/

* Bank of Japan Governor Haruhiko Kuroda on Tuesday offered an upbeat view of the economy but sought to douse market talk the central bank may soon consider raising interest rates. Russia's central bank, which is seeking to diversify its reserves, posted a large monthly gain in its gold reserves for the second consecutive month on Tuesday. India's gold imports from Switzerland hit their highest in a year last month, data from the Swiss customs bureau showed on Tuesday, making it the biggest destination for bullion exports from the trading and refining hub. Great Panther Silver Ltd GPR.TO has entered into agreement with units of Nyrstar N.V. to acquire the Coricancha gold-silver-lead-zinc-copper mine and mill complex in Peru. New standards for the use of precious metals in Islamic finance are encouraging the development of financial products based on gold and silver, from futures contracts to a mobile app. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

1500 Euro zone

Consumer confidence flash

December

1500 U.S.

Existing home sales

November

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