SINGAPORE, Sept 11 (Reuters) - Gold clung to small overnight
gains near $1,110 an ounce on Friday, but the metal was headed
for a third consecutive weekly fall as investors continued to
fret over the timing of a looming U.S. interest rate hike.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,111 an ounce by
0025 GMT, after gaining 0.5 percent in the previous session.
* Earlier in the week, gold had fallen to $1,101.11, the
lowest since Aug. 11. It has lost 1 percent for the week.
* U.S. gold GCcv1 , also headed for a third weekly dip, was
trading at $1,110.40.
* Traders were awaiting the Federal Reserve's next policy
statement on Sept. 17 for clues on the timing of a U.S. interest
rate rise, before taking any big positions in gold.
* Concerns over slowing growth in China, mixed economic data
and volatility in financial markets have increased uncertainty
about the timing of a U.S. rate increase, which had been
expected as early as this month.
* Data on Thursday showed the U.S. labour market appeared to
gain momentum in early September as fewer Americans filed for
weekly unemployment benefits, but weak inflation pressures may
complicate the Fed's decision whether to raise interest rates.
* Bullion has benefited in recent years from ultra-low
rates, which cut the opportunity cost of holding bullion while
holding the dollar in check. But expectations that rates will
rise soon have pushed the metal down 6 percent this year.
* BNP Paribas (PARIS:BNPP) SA revised its gold price forecast for 2015 on
Thursday, citing strength in the U.S. dollar and concerns over
the Chinese economy. The bank cut its price forecast by $15 to
$1,145 per ounce in 2015.
* The London Metal Exchange is in talks with the gold
industry with a view to launching precious metals derivatives,
LME Chief Executive Garry Jones said on Thursday.
* For the top stories on metals and other news, click MARKET NEWS
* Asian shares rose on Friday thanks to gains on Wall
Street, while the dollar steadied after facing pressure from a
rallying yuan and U.S. data that offered no clarity on whether
the Fed might raise interest rates next week. MKTS/GLOB
DATA AHEAD (GMT)
0600 Germany Wholesale price index Aug
0645 France Current account Jul
1230 U.S. Producer prices final Aug
1400 U.S. Univ of Michigan sentiment index Sep
PRICES AT 0025 GMT
Metal Last Change Pct chg
Spot gold 1111 -0.15 -0.01
Spot silver 14.69 0.02 0.14
Spot platinum 983 5 0.51
Spot palladium 586.85 -0.85 -0.14
Comex gold 1110.4 1.1 0.1
Comex silver 14.685 0.04 0.27
Euro 1.1279
DXY 95.537
COMEX gold and silver contracts show the
most active months