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PRECIOUS-Gold hovers below 15-mth peak as dollar firms on US rate talk

Published 04/05/2016, 10:41 am
Updated 04/05/2016, 10:50 am
© Reuters.  PRECIOUS-Gold hovers below 15-mth peak as dollar firms on US rate talk
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SINGAPORE, May 4 (Reuters) - Gold nursed losses on Wednesday, holding below a 15-month high as the dollar firmed after two Federal Reserve officials talked up U.S. interest rate hikes this year.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,285.19 an ounce by 0033 GMT, after dropping 0.4 percent in the previous session.

* U.S. gold GCcv1 eased 0.4 percent to $1,287.20, falling for a second straight session after a six-day rally.

* The United States could see two further interest rate rises this year, Atlanta Fed President Dennis Lockhart said on Tuesday. San Francisco Fed President John Williams said Tuesday that he would support an interest-rate hike in June as long as he sees continued progress on the economy, inflation and jobs. The dollar index .DXY , which measures the greenback's strength against six major currencies, finished Tuesday's session up 0.3 percent after hitting a 15-month low earlier in the session, recording its first increase in seven days.

* Earlier this week, gold had climbed to $1,303.60, its highest since January 2015, after the dollar slumped against the yen.

* Gold prices have gained 21 percent since the start of the year on the outlook that the Fed has slowed its expected pace of rate increases. Bullion is sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion.

* The recent rally in prices has prompted investors to pour money into gold funds.

* Assets of SPDR Gold Trust GLD , the world's top gold-backed exchange-traded fund, rose to their highest since December 2013 on Monday. GOL/ETF

* Mining company Glencore GLEN.L is considering selling its Vasilkovskoye gold mine in Kazakhstan, sources close to the deal said on Tuesday. For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* Stock markets worldwide fell on Tuesday after weak Chinese and British factory data rekindled fears of slowing global growth, sending benchmark Treasury yields to nearly two-week lows. MKTS/GLOB

DATA AHEAD (GMT)

0645 France Trade data Mar

0750 France Markit services PMI Apr

0755 Germany Markit services PMI Apr

0800 Euro zone Markit services PMI Apr

0900 Euro zone Retail sales Mar

1215 U.S. ADP national employment Apr

1230 U.S. International trade Mar

1230 U.S. Labor costs Q1

1400 U.S. Factory orders Mar

1400 U.S. ISM non-manufacturing PMI Apr

PRICES AT 0033 GMT

Metal

Last

Change Pct chg

Spot gold

1285.19

-0.41

-0.03 Spot silver

17.44

0.024

0.14 Spot platinum

1060.49

-0.51

-0.05 Spot palladium

606

0.25

0.04 Comex gold

1287.2

-4.6

-0.36 Comex silver

17.49 -0.009

-0.05

COMEX gold and silver contracts show the most active months

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