PRECIOUS-Gold edges up after 2-day drop in pre-holiday trade

Published 2015-12-23, 07:51 p/m
PRECIOUS-Gold edges up after 2-day drop in pre-holiday trade
XAU/USD
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GC
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SINGAPORE, Dec 24 (Reuters) - Gold rose only slightly on
Thursday, after two days of losses, as the metal struggled to
find direction in thin pre-holiday trade amid conflicting cues
from the currency, equities and energy markets.

FUNDAMENTALS
* Spot gold XAU= rose 0.2 percent to $1,072.10 an ounce by
0037 GMT, after losing 0.7 percent in the last two sessions.
* Many financial centres around the world will shut early on
Thursday and stay closed on Friday for the Christmas holidays.
Some will remain shut on Monday.
* On Wednesday, Wall Street rallied, U.S. Treasury yields
rose and the dollar edged up after a three-day losing streak.
* Strong equities and dollar typically suppress demand for
safe-haven gold.
* But the metal found some support in the energy markets, as
oil rose more than 3 percent on Wednesday following a drop to
multi-year lows earlier in the week. O/R
* Gold is positively correlated to oil as the metal is seen
as a hedge against oil-led inflation.
* Mixed U.S. economic data also did not help gold find
direction.
* New orders for U.S. manufactured capital goods fell in
November and the prior month's increase was revised sharply
lower. But other data on Wednesday showed consumer sentiment at
a five-month high in December and personal income rising for an
eighth straight month in November.
* Gold prices have shed 9 percent so far this year, a third
year of losses, mostly due to expectations the U.S. Federal
Reserve would raise interest rates, which it did this month.
* With the first U.S. rate increase in nearly a decade out
of the way, the focus is now on the pace of future hikes.
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* The dollar, euro and yen got off to a subdued start on
Thursday in what is likely to be a languid session with much of
the Western world already shuttered for the Christmas and
year-end holidays.

DATA AHEAD (GMT)
1330 U.S. Weekly jobless claims

PRICES AT 0037 GMT
Metal Last Change Pct chg

Spot gold 1072.1 2 0.19
Spot silver 14.33 0.035 0.24
Spot platinum 870.62 3.25 0.37
Spot palladium 551.47 -0.43 -0.08
Comex gold 1071.4 3.1 0.29
Comex silver 14.325 0.038 0.27

COMEX gold and silver contracts show the
most active months

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