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PRECIOUS-Gold broadly steady on short covering after global commodity sell-off

Published 14/11/2016, 11:55 am
© Reuters.  PRECIOUS-Gold broadly steady on short covering after global commodity sell-off
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Nov 14 (Reuters) - Gold was broadly steady on Monday on short covering, hovering around more than five-month lows hit on Friday after a global sell-off in commodities.

FUNDAMENTALS

* Spot gold XAU= slipped about 0.1 percent to $1,224.10 an ounce at 0041 GMT. It rose nearly 0.5 percent earlier in the session.

* U.S. gold futures GCcv1 were mostly unchanged at $1,223.40 per ounce.

* The U.S. dollar touched a nine-month peak in Asia on Monday as the risk of faster inflation at home and greater bond issuance kept Treasury yields elevated, a painful mix for assets in many emerging market countries. MKTS/GLOB

* MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off 0.45 percent.

* U.S. economic growth prospects appear strong enough for the Federal Reserve to proceed with gradual interest rate rises but the central bank is monitoring an increase in long-term U.S. government borrowing costs, Fed Vice Chair Stanley Fischer said on Friday. After Donald Trump's victory in the U.S. presidential election, investors may refocus in the coming week on the health of the world economy and any signs that years of rock-bottom interest rates and fiscal austerity are coming to an end. President-elect Donald Trump began laying the groundwork on Friday to take office on Jan. 20, 2017, gathering the most loyal advisers from his campaign and three of his children to plot his transition strategy. European Central Bank rate setter Philip Lane shrugged off a sell-off in euro zone government bonds since Donald Trump won the U.S. election, playing down the significance of "day-by-day" market moves for ECB policy. The Bank of Japan is expected to wait until the middle of next year before adopting further stimulus measures, although Donald Trump's election adds uncertainty to the economic outlook, a Reuters poll found on Friday. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.76 percent to 934.56 tonnes on Friday from 941.68 tonnes on Thursday.

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

DATA AHEAD (GMT)

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