* Gold retains 1.4 percent drop overnight
* SPDR sees 4-tonne outflow
* Softer Asian shares fail to lift gold
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Sept 10 (Reuters) - Gold languished near a
four-week low on Thursday, retaining sharp overnight losses, as
strong U.S. economic data and outflows from bullion-backed
exchange traded funds sapped investor interest.
Spot gold XAU= was little changed at $1,106.10 an ounce by
0637 GMT, after losing 1.4 percent in the previous session - its
biggest daily drop since July 20. The metal slid to $1,101.11 on
Wednesday, its lowest since Aug. 11.
U.S. gold GCcv1 was up 0.3 percent at $1,105, but largely
holding on to a 1.7 percent drop overnight.
Gold could see further weakness leading up to the Federal
Reserve policy meeting on Sept. 16-17, traders said.
Prices could head back towards July lows as bullion broke
through some key technical levels in Wednesday trade, said
analysts at ScotiaMocatta. The July low of $1,077 for spot gold
was the weakest since February 2010.
"The $1,100 level should prop up gold during Asian trade
today as physical names look to snap up the metal at these
levels," said MKS Group trader Sam Laughlin.
The $1,115-$1,120 range should cap any moves higher, though
the metal may again see further downward pressure in London and
New York once Chinese demand is removed, he said.
Many traders were awaiting the U.S. central bank'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.
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 more than 6 percent this year.
Economic data on Wednesday showed U.S. job openings surged
to a record high in July and employers appeared to have trouble
filling openings, the latest signal of an increasingly tight
labour market that could push the Federal Reserve closer to
raising interest rates. ID:nL1N11F1E7
Investor interest in gold has been tepid. SPDR Gold Trust,
the world's largest gold-backed exchange-traded fund, said its
holdings fell 0.61 percent to 678.18 tonnes on Wednesday - the
biggest drop since Aug. 12. GOL/ETF
A drop in Asian equities on Thursday failed to prop up gold,
often seen as a safe haven.
Asian stocks fell on Thursday after lacklustre Chinese and
Japanese economic data added to heightened worries about
slackening global growth, denting investors' appetite for
riskier assets. MKTS/GLOB
PRICES AT 0637 GMT
Metal Last Change Pct chg
Spot gold 1106.1 0.4 0.04
Spot silver 14.66 0.05 0.34
Spot platinum 986 5 0.51
Spot palladium 580.47 1.17 0.2
Comex gold 1105 3 0.27
Comex silver 14.63 0.054 0.37
Euro 1.1212
DXY 95.956
COMEX gold and silver contracts show the
most active months