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PRECIOUS-Gold set for weekly drop as appetite for risk curbs haven demand

Published 15/04/2016, 10:53 am
© Reuters.  PRECIOUS-Gold set for weekly drop as appetite for risk curbs haven demand
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SINGAPORE, April 15 (Reuters) - Gold nursed losses on Friday after posting three days of declines and was heading for its first weekly drop in three as strength in the dollar and global equities curbed appetite for the safe-haven metal.

FUNDAMENTALS

* Spot gold XAU= had eased 0.1 percent to $1,225.70 an ounce by 0042 GMT, following a 1.3-percent drop in the previous session. For the week, it is down 1 percent after hitting a three-week high earlier.

* Stocks across the globe rose to their highest levels since late December on Thursday and the U.S. dollar gained for a third day running as investors embraced risk.

* Markets are awaiting Chinese GDP data due later on Friday and Sunday's meeting of top oil producers in Doha for near-term cues.

* Bullion-backed exchange-traded funds have seen outflows in recent days, weighing on gold prices.

* Assets in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell to 806.82 tonnes on Thursday, the lowest in a month.

* Gold has steadied after its biggest quarterly rise in nearly 30 years in the three months to March, driven by a retreat in expectations that the U.S. Federal Reserve will push ahead with several rate hikes this year.

* Gold is sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar.

* Atlanta Fed President Dennis Lockhart on Thursday made it clear he would not support a rate hike this month and set a high bar for supporting any move even at the Federal Reserve's June meeting. The Fed will raise interest rates twice this year, most likely in June, but the probability has faded on signs of a weak start to the year, inflation that is still tame and a brittle global backdrop, a Reuters poll showed. Deutsche Bank AG DBKGn.DE agreed to settle U.S. lawsuits accusing it of conspiring with other banks to manipulate gold and silver prices at investors' expense, court papers show. Among other precious metals, silver XAG= was on track to post a 5-percent weekly gain, its biggest jump in six weeks. It hit its highest since October earlier this week before giving back some gains.

* Platinum XPT= was headed for its third straight weekly gain, while palladium XPD= was poised for its best week in six with a 3.5-percent rise.

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

DATA AHEAD (GMT)

0200 China GDP Q1

0200 China Industrial output Mar

0200 China Retail sales Mar

0200 China Urban investment Mar

0900 Euro zone Eurostat trade Feb

1230 U.S. New York Fed manufacturing Apr

1315 U.S. Industrial output Mar

1400 U.S. Univ of Michigan sentiment index Apr

PRICES AT 0042 GMT Metal

Last

Change Pct chg

Spot gold

1225.7

-1.31

-0.11 Spot silver

16.11 -0.038

-0.24 Spot platinum

982.65

-5.6

-0.57 Spot palladium

558

-3.75

-0.67 Comex gold

1227.6

1.1

0.09 Comex silver

16.14 -0.033

-0.2

COMEX gold and silver contracts show the most active months

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