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PRECIOUS-Gold drops after 4-day gain, weaker equities may support

Published 02/09/2015, 11:10 am
Updated 02/09/2015, 11:17 am
© Reuters.  PRECIOUS-Gold drops after 4-day gain, weaker equities may support
XAU/USD
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MANILA, Sept 2 (Reuters) - Gold edged lower on Wednesday after a four-day advance that had been fuelled as uncertainty over the fate of China's economy hit global equities.

FUNDAMENTALS

* Spot gold XAU= was down 0.3 percent at $1,136.51 an ounce by 0048 GMT, after touching a one-week high of $1,147.16 on Tuesday.

* U.S. gold for December delivery GCcv1 slipped 0.3 percent to $1,136.20 per ounce.

* Sustained losses in Asian equities could switch some funds to gold after data showed U.S. factory activity hit a more than two-year low in August, coming on the heels of a survey showing China's manufacturing sector shrank at its fastest pace in three years last month. ID:nL5N11715H

* The Federal Reserve will probably only gradually raise interest rates, irrespective of whether it decides to take the first step a few months earlier or later, Boston Fed President Eric Rosengren said. ID:nN9N0ZQ01D

* All eyes will be on Friday's U.S. nonfarm payrolls with economists saying strong employment growth in August could help cement expectations that the Fed will raise interest rates for the first time in nearly a decade at its next meeting on Sept. 16-17.

* For the top stories on metals and other news, click TOP/MTL or GOL

MARKET NEWS

* Asian shares slipped after weak manufacturing activity reports from both the U.S. and China sent Wall Street reeling, while the dollar steadied after steep losses. MKTS/GLOB

DATA AHEAD (GMT)

0900 Euro zone

Producer prices

Jul

1215 U.S.

ADP national employment

Aug

1345 U.S.

ISM-New York index

Aug

1400 U.S.

Factory orders

Jul

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