SINGAPORE, Sept 25 (Reuters) - Gold dropped from its highest
in a month on Friday, giving back some of its sharp overnight
gains, as the dollar rallied on an assurance from Federal
Reserve chair Janet Yellen that the U.S. central bank would
begin raising rates this year.
Platinum, which fell to a 6-1/2-year low this week, was on
track for its biggest weekly drop since mid-July following the
Volkswagen (XETRA:VOWG) emissions scandal, while palladium was set to post
its biggest weekly gain in 2-1/2 years.
FUNDAMENTALS
* Spot gold XAU= fell 0.4 percent to $1,149.20 an ounce by
0043 GMT, below a one-month high of $1,156.30 reached on
Thursday.
* Bullion gained 2 percent in the previous session, its
biggest daily jump in eight months and was on track to post its
second straight weekly gain.
* But the metal came under pressure after Yellen said late
on Thursday that she and other Fed policymakers do not expect
recent global economic and financial market developments to
significantly affect the Fed's policy and that it would hike
rates this year. ID:nL1N11U2VK
* Higher rates could dent demand for non-interest-paying
gold, while boosting the dollar.
* Elsewhere, SPDR Gold Trust GLD , the world's top
gold-backed exchange-traded fund, saw inflows for a third
straight session. The fund's holdings rose 3.87 tonnes to 680.27
tonnes on Thursday.
* Russia and Kazakhstan raised their gold holdings for a
sixth straight month in August, while Jordan and United Arab
Emirates both bolstered their reserves in July, according to
International Monetary Fund data. ID:nL1N11U2U1
* Gold miners trimmed their outstanding global hedge book by
17 tonnes in the second quarter, an industry report showed on
Thursday, as two of last year's biggest hedgers, Fresnillo (LONDON:FRES) and
Polyus Gold, closed out positions. ID:nL5N11U30M
* China's net gold imports from main conduit Hong Kong rose
to a three-month high in August. ID:nL4N11U2XS
* Among other precious metals, platinum XPT= slid for a
fifth session out of six on fears that demand from the auto
sector, where the metal is used in diesel catalysts, could take
a hit following the Volkswagen emissions scandal. It fell to
$924.50 earlier this week, its lowest since January 2009.
* Palladium XPD= , which is used in gasoline autocatalysts,
rose sharply this week on expectations that consumers could move
away from diesel cars to gasoline cars. With a near 8-percent
jump this week, palladium was poised for its biggest weekly jump
since March 2013.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares edged up on Friday, while the dollar rose and
U.S. interest rate futures price briefly dropped after Yellen
suggested the Fed is still on track to raise rates this year.
MKTS/GLOB
PRICES AT 0043 GMT
Metal Last Change Pct chg
Spot gold 1149.2 -4.42 -0.38
Spot silver 15.07 -0.05 -0.33
Spot platinum 945.65 -6.85 -0.72
Spot palladium 649.92 -3.58 -0.55
Comex gold 1149.1 -4.7 -0.41
Comex silver 15.095 -0.035 -0.23
Euro 1.1171
DXY 96.293
COMEX gold and silver contracts show the
most active months