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PRECIOUS-Gold prices regain some ground on weaker dollar

Published 22/11/2016, 12:01 pm
© Reuters.  PRECIOUS-Gold prices regain some ground on weaker dollar
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Nov 22 (Reuters) - Gold nudged higher early on Tuesday, extending gains from the previous session, as the U.S. dollar fell further after snapping a 10-day rising streak.

FUNDAMENTALS

* Spot gold XAU= was up 0.3 percent at $1,217.70 an ounce by 0036 GMT. In the previous session, the metal rose 0.4 percent following three sessions of losses.

* U.S. gold futures GCcv1 rose about 0.7 percent at $1,217.80 per ounce.

* The dollar index .DXY , which measures the greenback against a basket of major currencies, was down 0.3 percent at 100.720.

* The dollar dropped on Monday after rising for 10 straight days as investors consolidated gains after the election of a Republican president who is expected to adopt fiscal policies that will lead to interest rate increases. USD/

* U.S. stocks climbed on Monday to close at a record and European equity markets also moved higher as a jump in oil prices helped spur gains in the energy sector. MKTS/GLOB

* The Federal Reserve's second-in-command was the latest to wade into a post-election debate over what policies the new U.S. government should pursue, saying on Monday spending and other efforts to boost sluggish productivity could help reduce the Fed's burden of supporting the economy. The European Central Bank needs to continue supporting the euro zone economy with its ultra-loose policy, two of its top officials said on Monday, cementing expectations for an extension of the ECB's bond-buying scheme next month. Goldman Sachs (NYSE:GS) downgraded its 3,6-month gold price outlook to $1,200 per troy ounce on stronger cyclical outlook. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.71 percent to 908.77 tonnes on Monday from 915.29 tonnes on Friday. GOL/ETF

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

DATA AHEAD (GMT)

1500 Euro zone

Consumer confidence flash

Nov

1500 U.S.

Existing home sales

Oct

1500 U.S.

Richmond Fed composite index

Nov

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