* Gold ticks up after 1 percent gain on Friday
* Drop in equities, dollar supports safe-haven bids
* U.S. rate hike outlook to continue to weigh on prices
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Dec 21 (Reuters) - Gold edged up on Monday,
adding to sharp gains from the previous trading session, as
weakness in the dollar and equities helped the metal recoup some
losses from a U.S. interest rate hike last week.
Concerns that demand for non-interest-paying bullion will
take a hit from the rate hike continue to cast a shadow, and
will likely limit any rally in gold.
Spot gold XAU= had ticked up 0.3 percent to $1,069.36 an
ounce by 0640 GMT, adding to the 1.4 percent gain on Friday.
"We believe that trading conditions will start to thin out,
but that does not mean trading ranges will necessarily narrow,"
said INTL FCStone analyst Edward Meir.
Liquidity will start to drop as trading enters the last two
weeks of the year.
"Given the uninspiring chart patterns, we have to suspect
that the path of least resistance remains lower still for the
precious group as a whole, exacerbated by a stronger dollar and
a more aggressive Fed," Meir said.
The metal saw some safe-haven bids on Friday after global
equity markets fell sharply as slumping oil prices raised
concerns about slower growth, while the dollar slipped against
the yen on views the Bank of Japan may not ease policy as much
as expected. MKTS/GLOB
But the outlook for the dollar is bullish as the Fed is set
to hike rates further next year.
Gold's Friday rally followed a 2 percent loss in the session
prior to that, the metal's biggest single-day loss in five
months, as the Federal Reserve raised U.S. interest rates for
the first time in nearly a decade.
In the run up to the Fed move, speculators built a record
bearish bet in COMEX gold, U.S. Commodity Futures Trading
Commission data showed on Friday, a factor that could trigger
some short-covering.
"We believe the pace of U.S. rate hikes will decide the fate
of gold," ANZ said in a note.
The U.S. central bank had said last week its median
policymaker forecast expected the equivalent of four
quarter-point hikes next year.
The metal could revisit $1,000 for the first time in six
years if it breaks below its early December low at $1,045,
according to technical analysts.
Assets in SPDR Gold Trust GLD , the top gold-backed
exchange-traded fund, rose 2.98 percent to 648.92 tonnes on
Friday, the first increase in two months.
Total holdings had fallen to a seven-year low last week.
GOL/ETF
PRICES AT 0640 GMT
Metal Last Change Pct chg
Spot gold 1069.36 3.55 0.33
Spot silver 14.124 0.054 0.38
Spot platinum 853.8 -4.75 -0.55
Spot palladium 556.75 1.53 0.28
Comex gold 1068.7 3.7 0.35
Comex silver 14.115 0.019 0.13
COMEX gold and silver contracts show the
most active months
* Drop in equities, dollar supports safe-haven bids
* U.S. rate hike outlook to continue to weigh on prices
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Dec 21 (Reuters) - Gold edged up on Monday,
adding to sharp gains from the previous trading session, as
weakness in the dollar and equities helped the metal recoup some
losses from a U.S. interest rate hike last week.
Concerns that demand for non-interest-paying bullion will
take a hit from the rate hike continue to cast a shadow, and
will likely limit any rally in gold.
Spot gold XAU= had ticked up 0.3 percent to $1,069.36 an
ounce by 0640 GMT, adding to the 1.4 percent gain on Friday.
"We believe that trading conditions will start to thin out,
but that does not mean trading ranges will necessarily narrow,"
said INTL FCStone analyst Edward Meir.
Liquidity will start to drop as trading enters the last two
weeks of the year.
"Given the uninspiring chart patterns, we have to suspect
that the path of least resistance remains lower still for the
precious group as a whole, exacerbated by a stronger dollar and
a more aggressive Fed," Meir said.
The metal saw some safe-haven bids on Friday after global
equity markets fell sharply as slumping oil prices raised
concerns about slower growth, while the dollar slipped against
the yen on views the Bank of Japan may not ease policy as much
as expected. MKTS/GLOB
But the outlook for the dollar is bullish as the Fed is set
to hike rates further next year.
Gold's Friday rally followed a 2 percent loss in the session
prior to that, the metal's biggest single-day loss in five
months, as the Federal Reserve raised U.S. interest rates for
the first time in nearly a decade.
In the run up to the Fed move, speculators built a record
bearish bet in COMEX gold, U.S. Commodity Futures Trading
Commission data showed on Friday, a factor that could trigger
some short-covering.
"We believe the pace of U.S. rate hikes will decide the fate
of gold," ANZ said in a note.
The U.S. central bank had said last week its median
policymaker forecast expected the equivalent of four
quarter-point hikes next year.
The metal could revisit $1,000 for the first time in six
years if it breaks below its early December low at $1,045,
according to technical analysts.
Assets in SPDR Gold Trust GLD , the top gold-backed
exchange-traded fund, rose 2.98 percent to 648.92 tonnes on
Friday, the first increase in two months.
Total holdings had fallen to a seven-year low last week.
GOL/ETF
PRICES AT 0640 GMT
Metal Last Change Pct chg
Spot gold 1069.36 3.55 0.33
Spot silver 14.124 0.054 0.38
Spot platinum 853.8 -4.75 -0.55
Spot palladium 556.75 1.53 0.28
Comex gold 1068.7 3.7 0.35
Comex silver 14.115 0.019 0.13
COMEX gold and silver contracts show the
most active months