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PRECIOUS-Gold steady on uncertainty ahead of central bank meetings

Published 19/09/2016, 11:04 am
© Reuters.  PRECIOUS-Gold steady on uncertainty ahead of central bank meetings
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Sept 19 (Reuters) - Gold was little changed early on Monday, after touching a two-week low on Friday, as investors remained cautious ahead of central bank meetings in Japan and the United States this week

FUNDAMENTALS

* Spot gold XAU= was steady at $1,310.06 an ounce by 0055 GMT. The yellow metal dropped 0.3 percent to $1,306.26 on Friday, its lowest since Sept. 1.

* U.S. gold futures GCcv1 rose 0.3 percent to $1,313.50 an ounce.

* The dollar index .DXY , which measures the greenback against a basket of six major currencies, was down 0.1 percent at 95.998.

* U.S. consumer prices rose more than expected in August as healthcare costs recorded their biggest gain in 32-1/2 years, pointing to a steady build-up of inflation that could allow the Federal Reserve to raise interest rates this year. U.S. Treasury yields rose on Friday after data showed that U.S. consumer prices increased more than expected in August, raising the odds that the Federal Reserve will raise rates later this year. US/

* Investors are counting down to the Federal Reserve's Open Market Committee meeting Sept. 20-21, with chair Janet Yellen holding a news conference on Wednesday. The Bank of Japan also meets on Wednesday and is expected to ease monetary policy, though conflicting reports on what it might do have created much uncertainty.

* Peru will likely produce 4.5 million ounces of gold in 2017, the central bank said Friday, higher than its previous estimate for 4.1 million ounces, but below the 4.7 million ounces produced in 2015. Hedge funds and money managers lowered their net long positions in COMEX gold by 30,136 contracts to 248,858 contracts in the week to Sept. 13, U.S. Commodity Futures Trading Commission data showed on Friday. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 1.11 percent to 942.61 tonnes on Friday. GOL/ETF

* Demand for gold in India remained lacklustre this week as higher prices hampered consumer purchases, but discounts narrowed due to a correction in overseas rates. For the top stories on metals and other news, click TOP/MTL or GOL

MARKET REPORT

Caution gripped Asian shares on Monday ahead of central bank meetings in the United States and Japan this week, while oil prices bounced on talk of an OPEC deal on output and reports of fighting around Libyan oil ports. MKTS/GLOB

DATA/EVENT AHEAD (GMT)

0130 China House prices August

0800 Euro zone Current account July

1400 U.S. NAHB housing market index September

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