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PRECIOUS-Spot gold hovers near five week top on bets Fed will delay rate hike

Published 21/08/2015, 10:52 am
PRECIOUS-Spot gold hovers near five week top on bets Fed will delay rate hike
XAU/USD
-

MELBOURNE, Aug 21 (Reuters) - Spot gold neared its highest level in more than a month on Friday as bets climbed that the United States would delay an expected hike in interest rates to later than September.

FUNDAMENTALS

* Spot gold XAU= rose 0.7 percent to $1,153.50 an ounce by 0035 GMT, having struck the highest since July 15 at $1,155.46.

* U.S. gold GCcv1 was bid up 0.1 percent at $1,153.45, having also hit its loftiest since mid July.

* U.S. Federal Reserve officials widely agreed last month the economy was nearing the point where interest rates should move higher, but worried lagging inflation and a weak global economy posed too big a risk to commit to "lift off." ID:nL1N10U1HJ

* U.S. home resales rose to a near 8-1/2-year high in July and factory activity in the mid-Atlantic region picked up this month, fresh signs of steady economic growth that likely keeps the Federal Reserve on track to raise interest rates this year. ID:nL1N10V0OO

* Prime Minister Alexis Tsipras resigned on Thursday, hoping to strengthen his hold on power in snap elections after seven months in office in which he fought Greece's creditors for a better bailout deal but had to cave in. ID:nL5N10V2L5

* A mini debt crisis in northern China is exposing cracks in a financial pillar of the country's economic revival plan: the $430 billion loan-guarantee industry. ID:nL3N10T4CS

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

MARKET NEWS

* Asian stocks fell early on Friday, following Wall Street, as fears took hold of a China-led deceleration in global growth. MKTS/GLOB

DATA AHEAD (GMT)

0145 China Caixin manufacturing PMI flash Aug

0600 Germany GfK consumer sentiment Sep

0700 France Markit manufacturing PMI flash Aug

0730 Germany Markit manufacturing PMI flash Aug

0800 Euro zone Markit manufacturing PMI flash Aug

1345 U.S. Markit manufacturing PMI flash Aug

1400 Euro zone Consumer confidence Aug

PRICES AT 0035 GMT

Metal

Last

PrevClose Change Pct chg

Spot Gold

1153.50 1152.76

0.74

0.06 Spot Silver

15.51

15.55

-0.04

-0.26 Spot Platinum

1026.60 1029.00

-2.40

-0.23 Spot Palladium

619.02

618.00

1.02

0.17 100 OZ GOLD DEC5 1153

1153

0.10

0.01 SILVER 5000 SEP5

15.5

15.517 -0.02

-0.11

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