MELBOURNE, Nov 20 (Reuters) - Spot gold was steady on Friday but is set to finish the week stuck near its cheapest in more than five years as the metal struggles against a stronger dollar ahead of a widely expected U.S. rate rise next month.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,081.50 an ounce by 0041 GMT. Prices hit the weakest in more than five years at $1,064.95 an ounce on Wednesday and are set to close the week down just 0.2 percent.
* U.S. gold GCcv1 edged up by 0.3 percent to $1,080.70 an ounce.
* New U.S. applications for unemployment benefits fell last week while a gauge of U.S. economic activity rebounded in October, signs of a healthy labor market and economy that could give the Federal Reserve confidence to raise interest rates next month.
* Chinese banks are growing alarmed by a rising number of defaults among jewellery manufacturers, prompting them to review new gold lending more carefully in the world's biggest consumer, according to sources with direct knowledge of the issue. urn:newsml:reuters.com:*:nL3N13829C
* The dollar weakened across the board on Thursday after rising for four straight sessions, as investors cashed in recent gains driven by widespread expectations of a U.S. Federal Reserve interest rate increase next month. USD/
DATA AHEAD (GMT)
0700 Germany Producer prices Oct
1500 Euro zone Consumer confidence Nov
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MARKET NEWS
- The U.S. dollar pulled back on Thursday after four sessions of gains and U.S. stocks edged lower in choppy trade as the prospect that the U.S. Federal Reserve will hike interest rates next month gained steam.
DATA AHEAD (GMT)
0700 Germany Producer prices Oct
1500 Euro zone Consumer confidence Nov
PRICES AT 0043 GMT
Metal
Last
PrevClose Change Pct chg
Spot Gold
1081.50 1082.00
-0.50
-0.05 Spot Silver
14.23
14.23
0.00
-0.04 Spot Platinum
855.70
853.20
2.50
0.29 Spot Palladium 541.80
536.60
5.20
0.97 100 OZ GOLD DEC5 1081
1078
3.00
0.28 SILVER 5000 DEC5
14.225
14.222
0.00
0.02