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PRECIOUS-Gold edges higher as dollar dips, Fed in focus

Published 25/08/2016, 11:22 am
© Reuters.  PRECIOUS-Gold edges higher as dollar dips, Fed in focus
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Aug 25 (Reuters) - Gold rose slightly on Thursday after hitting a four-week low in the previous session, with the dollar losing strength ahead of a speech by Federal Reserve Chair Janet Yellen that will be closely watched for clues on U.S. interest rate policy.

FUNDAMENTALS

* Spot gold XAU= was up 0.2 percent at $1,326.22 an ounce at 0102 GMT. The metal touched a 4-week low of $1,323.20 Wednesday on a firm dollar.

* U.S. gold GCcv1 was nearly flat at $1,328.70 an ounce.

* Yellen is scheduled to address a meeting of central bankers in Jackson Hole, Wyoming, at 1400 GMT on Friday. Recent hawkish comments from Fed policymakers have raised investors' expectations that she might adopt a less cautious tone on rates. The dollar index .DXY , which tracks the greenback against a basket of six major rivals, was down 0.1 percent at 94.695.

* The dollar has swayed in both directions over the past week as expectations for a near-term Fed rate hike have ebbed and flowed.

* Rising U.S. interest rates increase the opportunity cost of holding non-yielding bullion and boost the dollar, in which gold is priced.

* U.S. home resales fell more than expected in July after four straight months of strong gains, as a lack of inventory limited choice for buyers, but further price rises suggested the housing market remained on solid ground. China's silver imports fell 36 percent year-on-year in July, official customs data showed on Wednesday, while its platinum imports were 47 percent lower. Polymetal POLYP.L expects gold prices to stay stable in the second half of this year if macroeconomic fundamentals are steady, a senior company official said, adding Russia's gold and silver miner also planned to return to the elite FTSE 100 index. Mexican regulators said they are examining whether mining company Goldcorp Inc G.TO broke any regulations in its handling of a long-running leak of contaminated water at Mexico's biggest gold mine. For the top stories on metals and other news, click

TOP/MTL or GOL

MARKET REPORT

* Asian stocks slipped on Thursday, taking their cue from an overnight drop on Wall Street. MKTS/GLOB

DATA AHEAD (GMT)

0800 Germany IFO business climate, current conditions August

1230 US Durable goods for July

1230 US initial jobless claims

1345 US Markit Comp Flash PMI for August

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