SINGAPORE, Dec 22 (Reuters) - Gold retained gains from a
two-day rally on Tuesday supported by a slide in the dollar, but
a slump in oil prices and uncertainty over the pace of future
U.S. interest rate hikes capped the metal's advance.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,077.60 an ounce
by 0047 GMT, after gaining 2.5 percent in the last two sessions.
* The metal got a boost on Monday as the dollar fell after
data from the Chicago Federal Reserve suggested the U.S. economy
grew at a below average pace in November before the Federal
Reserve raised interest rates last week.
* A softer greenback makes dollar-denominated gold cheaper
for holders of other currencies.
* A dip in crude oil to its lowest levels since 2004 was
seen hurting gold's ascent in the near term as lower prices
could ignite deflation fears. Bullion is often seen as a hedge
against oil-led inflation.
* Also weighing on the metal was the outlook for U.S. rates,
following the Fed's first rate hike in nearly a decade last
week. Janet Yellen, who chairs the rate-setting Federal Open
Market Committee, made clear future increases would be gradual.
* The Fed's promise of gradual rate hikes in coming months
means the central bank will not raise rates at every meeting,
Atlanta Fed President Dennis Lockhart said on Monday. The more
probable pace of upcoming hikes "will be more like every other
meeting," he said.
* Investors fear higher rates could dent demand for
non-interest-paying gold.
* Assets in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.46 percent to 645.94
tonnes on Monday, near a seven-year low.
* At least 13 people died when an old gold mine they were
working in collapsed in eastern Guinea, a local official said on
Monday.
* Gold producer Randgold Resources RRS.L said on Monday it
was pulling out of a joint venture with AngloGold Ashanti
ANGJ.J to redevelop AngloGold's Obuasi mine, in a decision
that could spell closure for one of Ghana's most important
mines.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares took solace from gains on Wall Street and
edged higher on Tuesday, though gains were capped by caution
over low share trade volume and plunging Brent crude oil prices
ahead of this week's holidays. MKTS/GLOB
DATA AHEAD (GMT)
0700 Germany GfK consumer sentiment Jan
0700 Germany Import prices Nov
1330 U.S. GDP Final Q3
1400 U.S. Monthly home price index Oct
1500 U.S. Existing home sales Nov
PRICES AT 0047 GMT
Metal Last Change Pct chg
Spot gold 1077.6 -0.46 -0.04
Spot silver 14.2 -0.063 -0.44
Spot platinum 874.01 1.11 0.13
Spot palladium 550.7 1.65 0.3
Comex gold 1077.1 -3.5 -0.32
Comex silver 14.235 -0.08 -0.56
COMEX gold and silver contracts show the
most active months
two-day rally on Tuesday supported by a slide in the dollar, but
a slump in oil prices and uncertainty over the pace of future
U.S. interest rate hikes capped the metal's advance.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,077.60 an ounce
by 0047 GMT, after gaining 2.5 percent in the last two sessions.
* The metal got a boost on Monday as the dollar fell after
data from the Chicago Federal Reserve suggested the U.S. economy
grew at a below average pace in November before the Federal
Reserve raised interest rates last week.
* A softer greenback makes dollar-denominated gold cheaper
for holders of other currencies.
* A dip in crude oil to its lowest levels since 2004 was
seen hurting gold's ascent in the near term as lower prices
could ignite deflation fears. Bullion is often seen as a hedge
against oil-led inflation.
* Also weighing on the metal was the outlook for U.S. rates,
following the Fed's first rate hike in nearly a decade last
week. Janet Yellen, who chairs the rate-setting Federal Open
Market Committee, made clear future increases would be gradual.
* The Fed's promise of gradual rate hikes in coming months
means the central bank will not raise rates at every meeting,
Atlanta Fed President Dennis Lockhart said on Monday. The more
probable pace of upcoming hikes "will be more like every other
meeting," he said.
* Investors fear higher rates could dent demand for
non-interest-paying gold.
* Assets in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.46 percent to 645.94
tonnes on Monday, near a seven-year low.
* At least 13 people died when an old gold mine they were
working in collapsed in eastern Guinea, a local official said on
Monday.
* Gold producer Randgold Resources RRS.L said on Monday it
was pulling out of a joint venture with AngloGold Ashanti
ANGJ.J to redevelop AngloGold's Obuasi mine, in a decision
that could spell closure for one of Ghana's most important
mines.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares took solace from gains on Wall Street and
edged higher on Tuesday, though gains were capped by caution
over low share trade volume and plunging Brent crude oil prices
ahead of this week's holidays. MKTS/GLOB
DATA AHEAD (GMT)
0700 Germany GfK consumer sentiment Jan
0700 Germany Import prices Nov
1330 U.S. GDP Final Q3
1400 U.S. Monthly home price index Oct
1500 U.S. Existing home sales Nov
PRICES AT 0047 GMT
Metal Last Change Pct chg
Spot gold 1077.6 -0.46 -0.04
Spot silver 14.2 -0.063 -0.44
Spot platinum 874.01 1.11 0.13
Spot palladium 550.7 1.65 0.3
Comex gold 1077.1 -3.5 -0.32
Comex silver 14.235 -0.08 -0.56
COMEX gold and silver contracts show the
most active months