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PRECIOUS-Gold poised for best week in eight on dollar slump

Published 29/04/2016, 10:34 am
© Reuters.  PRECIOUS-Gold poised for best week in eight on dollar slump
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SINGAPORE, April 29 (Reuters) - Gold held near its highest in a week on Friday and was poised for its biggest weekly rise in eight, as the dollar tumbled after the Bank of Japan and the U.S. Federal Reserve stood pat on policy.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,265.61 an ounce by 0025 GMT, after climbing to its highest in a week at $1,269.70 on Thursday.

* For the week, the metal is up 2.7 percent in what would be its biggest weekly jump since the week ended March 4.

* The U.S. dollar and euro posted their biggest daily losses against the yen in more than five years on Thursday in the wake of the BOJ's surprise decision not to further ease monetary policy. USD/

* The dollar was set for a 1.5-percent weekly loss against a basket of major currencies. Stocks around the globe fell, supporting safe-haven gold. MKTS/GLOB

* The Federal Reserve's decision on Wednesday to leave interest rates unchanged also helped. The Fed kept the door open to a hike in June while showing little sign it was in a hurry to tighten monetary policy amid an apparent slowdown in the U.S. economy. Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.

* After three straight years of losses, analysts are finally prepared to say gold prices have found a bottom, with rising prices seen this year and next as concerns over the pace of U.S. monetary policy tightening fade. U.S. data on Thursday supported views the Fed will take a cautious stance in hiking rates this year. U.S. economic growth braked sharply in the first quarter to its slowest pace in two years. Assets in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.19 percent to 804.14 tonnes on Thursday. GOL/ETF

* Among other precious metals, silver XAG= was on track for a fourth straight weekly gain, while platinum XPT= was eyeing its fifth weekly rise.

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

DATA AHEAD (GMT)

0530 France Preliminary GDP Q1

0600 Germany Retail sales Mar

0900 Euro zone Inflation Apr

0900 Euro zone Flash GDP Q1

0900 Euro zone Unemployment rate Mar

1230 U.S. Personal income Mar

1230 U.S. Employment wages Q1

1345 U.S. Chicago PMI Apr

PRICES AT 0025 GMT

Metal

Last

Change Pct chg

Spot gold

1265.61

-0.47

-0.04 Spot silver

17.59

0.06

0.34 Spot platinum

1048.5

3.5

0.33 Spot palladium

620.93

-0.07

-0.01 Comex gold

1267.9

1.5

0.12 Comex silver

17.595

0.042

0.24

COMEX gold and silver contracts show the most active months

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