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MANILA, July 24 (Reuters) - Gold held near its lowest level
since March 2010 early on Friday and was set to end the week
posting its deepest loss in nine months, pressured by
predictions of further losses as the Federal Reserve moves
closer to raising interest rates.
A drop in U.S. weekly jobless claims to the lowest in more
than four decades strengthened expectations of a U.S. interest
rate hike later in the year.
FUNDAMENTALS
* Spot gold XAU= was flat at $1,090.25 an ounce by 0042
GMT. Having tripped to a fresh five-year low of $1,086.61 on
Thursday, gold has lost almost 4 percent for the week so far,
its steepest since October 2014.
* Bullion's rout deepened this week after sliding 3.3
percent on Monday, the most since September 2013, in a sell-off
accompanied by big trading volumes in New York and Shanghai.
* As the global bullion market continues to reel from
Monday's dramatic price plunge, traders from Hong Kong to New
York are pointing the finger at others for being behind the move
while struggling to unmask the mystery sellers. ID:nL1N10209Z
* The number of Americans filing new applications for
unemployment benefits last week dropped to its lowest level
since November 1973, putting the Fed on course for its first
rate hike in nearly a decade. ID:nL1N10317J
* Some analysts say the Fed is likely to increase rates by
September, and possibly follow with another hike in December,
suggesting more downside risk for non-interest bearing gold.
* Technically, gold will likely find a temporary ledge just
below current levels, but could be on track to fall below $1,000
an ounce, a level last seen in 2009. ID:nL1N1033SN
* Holdings of SPDR Gold Trust GLD , the world's biggest
gold-backed exchange-traded fund, fell for a sixth day on
Thursday to 22.01 million ounces, the lowest since August 2008.
GOL/ETF
* U.S. gold for August delivery GCcv1 slipped 0.4 percent
to $1,089.40 an ounce.
* For the top stories on metals and other news, click
TOP/MTL or GOL/
MARKET NEWS
* The euro hovered near one-week highs against the dollar as
relief from Greece taking another step towards a bailout
prompted bouts of short-covering, while lower U.S. debt yields
put the greenback on the defensive versus the yen. USD/
* Asian shares edged down and were on track for a weekly
loss. MKTS/GLOB
DATA AHEAD (GMT)
0145 China Caixin manufacturing PMI flash July
0700 France Markit manufacturing PMI flash July
0730 Germany Markit manufacturing PMI flash July
0800 Euro zone Markit manufacturing PMI flash July
1345 U.S. Markit manufacturing PMI flash July
1400 U.S. New home sales June