PRECIOUS-Gold eyes worst week since March on dollar strength

Published 2016-05-12, 09:26 p/m
PRECIOUS-Gold eyes worst week since March on dollar strength
XAU/USD
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GC
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GLD
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USDIDX
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MANILA, May 13 (Reuters) - Gold edged higher on Friday after
losing more than 1 percent in the prior session, but was on
track for its biggest weekly decline since March as a firmer
U.S. dollar cut the metal's draw.

FUNDAMENTALS
* Spot gold XAU= was up 0.2 percent at $1,265.61 an ounce
by 0116 GMT, after dropping 1.1 percent on Thursday. It has lost
1.8 percent so far for the week, the most since the week ended
March 25.
* U.S. gold for June delivery GCcv1 slipped 0.3 percent to
$1,267.40 an ounce.
* The dollar was up for a fourth week in five against a
basket of major currencies .DXY , making dollar-denominated
assets such as gold more costly for holders of other currencies.
* The greenback got a boost overnight after Boston Federal
Reserve President Eric Rosengren said the Fed should raise
interest rates if data confirms a stronger jobs market and
inflation outlook in the second quarter.
* But gold has gained more than 19 percent in 2016 as a run
of soft economic data in the United States and around the world
allayed expectations that the Federal Reserve would press ahead
with interest rate hikes in the near term. The U.S. policymakers
meet next in June.
* Underlining optimism towards bullion, holdings of SPDR
Gold Trust GLD (NYSE:GLD), the world's largest gold-backed exchange-traded
fund, stood at 27.17 million ounces on Thursday, the highest
since November 2013. HLDSPDRGT=XAU
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* The dollar held gains against the yen and euro, with
investors eyeing U.S. data later in the day that could set the
greenback's tone. Asian shares slipped. USD/ MKTS/GLOB

DATA AHEAD (GMT)
0600 Germany GDP flash Q1
0900 Euro zone GDP flash Q1
1230 U.S. Retail sales Apr
1400 U.S. Business inventories Mar
1400 U.S. Univ of Michigan sentiment index May


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