SINGAPORE, Nov 27 (Reuters) - Gold hovered close to its lowest level in nearly six years on Friday, on track for a sixth straight weekly decline, weakened by the strength in the dollar and expectations of a U.S. interest rate hike next month.
FUNDAMENTALS
* Spot gold XAU= was steady at $1,072.20 an ounce by 0041 GMT, after closing flat on Thursday as liquidity was thin due to the U.S. Thanksgiving holiday.
* The metal is down 0.5 percent for the week after dropping to $1,064.95 last week, its lowest since February 2010.
* U.S. gold futures GCcv1 were also headed for a sixth consecutive weekly decline. Silver XAG= looked set to post a 1 percent weekly gain, snapping a five-week losing streak.
* Bullion has been pressured by a robust dollar, which is trading near an eight-month high against a basket of major currencies, boosted by euro weakness and prospects of higher U.S. rates. USD/
* The Federal Reserve is widely expected to hike U.S. rates for the first time in nearly a decade when it meets next in December.
* Investors believe higher rates could dent demand for non-yielding bullion, while boosting the dollar.
* Precious metals funds posted their biggest net outflow last week in around four months, while investors kept up the rapid pace of inflows into money market funds, Bank of America Merrill Lynch (N:BAC) said on Thursday. urn:newsml:reuters.com:*:nL8N13L3BO
* India's gold buying in the key December quarter is likely to fall to the lowest level in eight years, hurt by poor investment demand and back-to-back droughts that have slashed earnings for the country's millions of farmers. urn:newsml:reuters.com:*:nL3N13L3BC
* China's net gold imports from main conduit Hong Kong fell in October from a 10-month high reached in the previous month, data showed on Thursday. urn:newsml:reuters.com:*:nL3N13L2ZA
* For the top stories on metals and other news, click TOP/MTL or GOL
MARKET NEWS
* The dollar, euro and yen found themselves in familiar territory early on Friday, having shuffled sideways in thin trade with U.S. markets shut for the Thanksgiving Day holiday. MKTS/GLOB
DATA AHEAD (GMT)
0700 Germany Import prices Oct
0745 France Consumer spending Oct
0745 France Producer prices Oct
1000 Euro zone Business climate Nov
1200 Germany GfK consumer sentiment Dec
PRICES AT 0041 GMT Metal
Last
Change Pct chg
Spot gold
1072.2
0.9
0.08 Spot silver
14.3
0.05
0.35 Spot platinum
853.15
2.65
0.31 Spot palladium
555.65
0.15
0.03 Comex gold
1071.3
1.3
0.12 Comex silver
14.255
0.097
0.69
COMEX gold and silver contracts show the most active months