SINGAPORE, Sept 21 (Reuters) - Gold dipped slightly on
Monday after a three-day rally, but the metal still held close
its highest in nearly three weeks, as the Federal Reserve's move
last week to leave U.S. interest rates unchanged weighed on
global equities.
FUNDAMENTALS
* Spot gold XAU= dipped 0.2 percent to $1,137.20 an ounce
by 0051 GMT, after gaining 0.7 percent on Friday. The metal had
climbed to $1,141.50 in the previous session, its highest since
Sept. 2.
* The Fed kept interest rates unchanged on Thursday in a bow
to worries about the global economy, financial market volatility
and sluggish inflation at home. It left open the possibility of
modest rate rises later this year.
* A majority of Wall Street's top banks now expect the Fed
to begin increasing rates in December, according to a Reuters
poll conducted on Thursday after the Fed's policy decision.
* Stocks on major markets slipped on Friday and bond prices
rose, pushing yields sharply lower, and helping safe-haven gold.
* Stocks and currencies in emerging markets, which are more
vulnerable to higher U.S. interest rates, briefly welcomed the
Fed's decision to postpone an interest rate rise, but their
bounce faded with the persistent sell-off in developed markets.
* The decision to not hike rates last week is positive for
non-interest-paying gold, which could see demand drop with
higher rates. But with the Fed expected to hike rates before the
end of the year, gold's gains could be limited.
* Hedge funds and money managers slashed their net long
position in COMEX gold to a five-week low and cut a bullish
silver stance for the first time in six weeks in the week ended
Sept. 15, U.S. Commodity Futures Trading Commission data showed
on Friday.
* Russia's gold reserves rose to 42.4 million troy ounces as
of Sept. 1, compared with 41.4 million troy ounces a month
earlier, the central bank said on Friday.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* The dollar started Monday trade on a firm footing, having
recovered recent losses as major central banks were quick to
burnish their dovish credentials after the Fed last week delayed
a long-anticipated hike in U.S. interest rates. USD/
DATA AHEAD (GMT)
0600 Germany Producer prices Aug
1400 U.S. Existing home sales Aug
PRICES AT 0051 GMT
Metal Last Change Pct chg
Spot gold 1137.2 -1.8 -0.16
Spot silver 15.11 -0.05 -0.33
Spot platinum 975.5 -3 -0.31
Spot palladium 605.7 2.7 0.45
Comex gold 1136.9 -0.9 -0.08
Comex silver 15.125 -0.038 -0.25
Euro 1.1306
DXY 95.153
COMEX gold and silver contracts show the
most active months