🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

PRECIOUS-Strong dollar, US rate hike prospects keep pressure on gold

Published 01/12/2015, 11:49 am
Updated 01/12/2015, 11:50 am
PRECIOUS-Strong dollar, US rate hike prospects keep pressure on gold
XAU/USD
-
GC
-

SINGAPORE, Dec 1 (Reuters) - Gold clung to small overnight gains on Tuesday but was within striking distance of a nearly six-year low, pressured by a robust dollar and a looming U.S. interest rate hike.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,064.66 an ounce by 0036 GMT, after gaining 0.5 percent on Monday.

* But the metal wasn't far from $1,052.46, its lowest since Feb. 2010 hit last week. Bullion also posted its biggest monthly drop in 2-1/2 years in November with a 7-percent decline.

* Investors have been positioning for a U.S. rate hike, expected this month at the Federal Reserve's Dec. 15-16 policy meet, by selling non-interest-paying gold.

* The dollar, on the other hand, was on the cusp of reaching its highest in nearly 13 years against a basket of currencies on Tuesday, piling more pressure on greenback-denominated gold. USD/

* A U.S. payrolls report on Friday will be closely watched for clues about the strength of the economy and its impact on the Fed's monetary policy. A strong number, after a surge in job growth in October, could cement expectations that the U.S. central bank will deliver its first hike in almost a decade.

* Hedge funds and money managers raised their net short position in COMEX gold contracts to the biggest on record in the week to Nov. 24, U.S. Commodity Futures Trading Commission data showed on Monday. urn:newsml:reuters.com:*:nL1N13P221

* Assets in SPDR Gold Trust, the world's top gold-backed exchange-traded fund, are at their lowest since September 2008.

* In the physical markets, there were signs of strong demand but not enough to provide a boost to gold prices.

* The U.S. Mint's sales of American Eagle coins surged in November, with gold nearly tripling month-over-month and silver already reaching a new annual record as bullion prices fell to multi-year lows, data on Monday showed. urn:newsml:reuters.com:*:nL1N13P2FW

* U.S. jewellery imports jumped 85 percent for platinum in the third quarter of 2015 and 12 percent for gold, ahead of the holiday season, as prices for both precious metals fell for the fifth straight quarter, Thomson Reuters GFMS calculations showed on Monday. urn:newsml:reuters.com:*:nL1N13P1F2

* Elsewhere, gold ounces transferred between accounts held by bullion clearers rose 2 percent in October from a month earlier, the London Bullion Market Association said. urn:newsml:reuters.com:*:nL8N13P4D7

* India is set to discuss changes to a scheme to unlock the country's massive stash of gold at a high-level meeting on Tuesday, after a muted response to the programme in the first month of its launch, according to banking sources. urn:newsml:reuters.com:*:nL3N13P3CK

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

DATA AHEAD (GMT)

0100 China NBS Non-mfg PMI Nov

0100 China NBS Manufacturing PMI Nov

0145 China Caixin Mfg PMI Final Nov

1445 U.S. Markit Mfg PMI Nov

1500 U.S. Construction spending Oct

1500 U.S. ISM Manufacturing PMI Nov

1830 U.S. Total vehicle sales Nov

PRICES AT 0036 GMT Metal

Last

Change Pct chg

Spot gold

1064.66

0.64

0.06 Spot silver

14.088

0.003

0.02 Spot platinum

834.9

3.82

0.46 Spot palladium

542.72

-2.04

-0.37 Comex gold

1064.7

-1.1

-0.1 Comex silver

14.04

-0.01

-0.07

COMEX gold and silver contracts show the most active months

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.