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PRECIOUS-Gold struggles as U.S. rate hike looms

Published 18/08/2015, 10:59 am
PRECIOUS-Gold struggles as U.S. rate hike looms
XAU/USD
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GOLD
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MANILA, Aug 18 (Reuters) - Gold was trapped in narrow ranges early on Tuesday, struggling to move higher as investors looked to a near-term increase in U.S. interest rates in the face of mostly firm economic signals.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,117.26 an ounce by 0041 GMT, after rising modestly on Monday.

* U.S. gold for December delivery GCcv1 slipped 0.2 percent to $1,116.70 an ounce.

* U.S. homebuilder sentiment rose in August to its highest level since a matching reading almost a decade ago, the National Association of Home Builders said. ID:nN9N10A01S

* Solid jobs growth, rebounding retail sales and a housing sector on the mend suggest the Federal Reserve is on track to raise interest rates this year, perhaps at the next policy meeting in September.

* That had weighed on the price of non-interest bearing gold. There should be more clues on the Fed's thinking regarding interest rates when the minutes of the U.S. central bank's July 28-29 meeting are released on Wednesday.

* Investors withdrew $2.3 billion from gold exchange-traded products in July as the dollar strengthened. ID:nL5N10O46Y

* An effort by U.S. businesses to whittle down a huge inventory stockpile could weigh on production over the second half of the year and undercut economic growth. ID:nL1N10S1D0

* Top gold producer Barrick Gold Corp ABX.TO said that Jim Gowans, a veteran miner and one of its co-presidents, was retiring and that he would not be replaced, as the miner moves to thin out its ranks and create a leaner operating structure. ID:nL1N10S0TH

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

MARKET NEWS

* The dollar remained in favour against its peers, with focus shifting back to potential rate hikes by the Federal Reserve and away from the volatility caused last week by China's shock yuan devaluation. USD/

* Asian shares firmed after a strong U.S. housing data offset concerns from a weak U.S. manufacturing report. MKTS/GLOB

DATA AHEAD (GMT)

0130 China

House prices

Jul

1230 U.S.

Housing starts

Jul

1230 U.S.

Building permits

Jul

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