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PRECIOUS-Gold falls as safe haven appeal wanes after failed Turkey coup

Published 18/07/2016, 11:20 am
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BENGALURU, July 18 (Reuters) - Gold edged lower early Monday, after registering its first weekly decline since May last week, following a failed attempt to seize power in Turkey which was seen having limited impact on the global markets.

FUNDAMENTALS

* Spot gold XAU= slipped 0.5 percent to $1,331.14 per ounce by 0101 GMT. Bullion fell over 2 percent last week, its first weekly decline in seven weeks.

* U.S. gold GCcv1 was up 0.3 percent to $1,331.90 an ounce.

* The U.S. dollar gained on the yen in Asia on Monday as investors unwound safe-haven trades in the wake of the attempted coup in Turkey, while better U.S. economic news and the promise of central bank stimulus lent support to equities. MKTS/GLOB USD/

* Turkey widened a crackdown on suspected supporters of the failed military coup, taking the number of people rounded up in the armed forces and judiciary to 6,000, and the government said it was in control of the country and economy. U.S. retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, bolstering views that economic growth picked up in the second quarter. St. Louis Fed President James Bullard said on Friday there are "upside" risks to his view that the U.S. central bank should raise interest rates just once this year and remain on hold in 2017 and 2018. Soaring gold and silver prices have clipped a deal-making spree for metals streaming companies - the mining financiers that provided a lifeline to the cash-strapped industry in recent years. As gold's safe-haven appeal waned, speculators cut their record bullish bets for the first time in five weeks, U.S. Commodity Futures Trading Commission (CFTC) data showed. However, hedge funds and money managers again raised their net long positions in COMEX silver futures and options to fresh record highs in the week to July 12, as spot prices hovered near two-year highs, data showed on Friday.

* Platinum mining firms and South African trade unions should conclude wage talks quickly to avoid the protracted disputes that led to a five-month strike two years ago, mines minister Mosebenzi Zwane said on Friday. Consumers in Asia took profits on their gold holdings as a price rally last week helped bullion hit its highest in more than two years, keeping new buyers at bay despite jewellers offering steep discounts in second-top consumer India. For the top stories on metals and other news, click TOP/MTL or GOL

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