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PRECIOUS-Gold steadies after best month in a year

Published 01/02/2016, 11:59 am
Updated 01/02/2016, 12:00 pm
PRECIOUS-Gold steadies after best month in a year
XAU/USD
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GC
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MANILA, Feb 1 (Reuters) - Gold steadied at the start of the month on Monday, supported by slower U.S. fourth-quarter economic growth, after ending January with its biggest monthly gain in a year.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,117.31 an ounce by 0043 GMT. Bullion ended last month with a gain of 5.4 percent, its largest gain since January 2015.

* U.S. gold for April delivery GCcv1 was up 0.1 percent at $1,117.80 an ounce.

* U.S. economic growth braked sharply in the last quarter of 2015, expanding at an annual 0.7 percent rate, as businesses stepped up efforts to reduce an inventory glut and a strong dollar and tepid global demand weighed on exports. The data underpinned hopes that the Federal Reserve will slow the pace of future U.S. rate increases, aiding gold.

* Gold touched a 12-week high of $1,127.80 on Wednesday, after the Fed said it was closely watching the global economy and financial markets and their impact on the U.S. economy.

* Fresh data out of China on Monday should provide more clues on the state of the world's No. 2 economy, with the government releasing both manufacturing and non-manufacturing data.

* Dallas Fed President Robert Kaplan said it was "significant" that the Fed decided to no longer describe the risks to the U.S. economy as being "balanced," a term that meant officials were comfortable with their view of the outlook. Hedge funds and money managers boosted their bullish bet in COMEX gold to a 12-week high in the week to Jan. 26, as they also hiked a silver net long stance, U.S. Commodity Futures Trading Commission data showed on Friday. For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* Asian shares started a new month on somewhat firmer footing, helped by accommodative monetary policies in Japan and Europe, but traders were cautious ahead of China factory and service sector activity surveys. MKTS/GLOB

* The yen nursed broad losses while the euro was also on the defensive after a surprise cut in Japanese interest rates sent bond yields sliding across the globe and particularly in Europe. USD/

DATA AHEAD (GMT)

0100 China

Official manufacturing PMI

Jan

0100 China

Official non-manufacturing PMI

Jan

0145 China

Caixin manufacturing PMI final

Jan

0855 Germany

Markit/BME manufacturing PMI

Jan

0900 Euro zone

Markit manufacturing PMI

Jan

1330 U.S.

Personal income

Dec

1500 U.S.

ISM manufacturing PMI

Jan

1500 U.S.

Construction spending

Dec

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