SINGAPORE, Nov 11 (Reuters) - Gold was trading near a
three-month low on Wednesday, as strength in the dollar and
outflows from bullion funds hurt the metal ahead of an
anticipated U.S. rate hike.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,088.80 an ounce
by 0032 GMT. It has fallen for nine out of ten sessions as of
Tuesday.
* The metal had fallen to $1,084.90 on Friday, the lowest
since Aug. 7, after a robust U.S. nonfarm payrolls report
boosted bets the Federal Reserve would hike interest rates at
its next meeting in December.
* Bullion as a non-interest-paying asset could take a hit to
demand with higher rates.
* The dollar on Tuesday hit its highest in seven months
against a basket of major currencies, in the rally following the
jobs report. USD/
* A stronger greenback makes dollar-denominated gold more
expensive for holders of other currencies.
* A robust report on U.S. employment released last week has
strengthened the conviction of economists who have been
forecasting a December interest rate increase, according to a
Reuters poll published on Tuesday.
* The survey of over 80 leading economists found a 70
percent median chance the U.S. central bank would raise its
short-term lending rate at its final meeting of the year, next
month. urn:newsml:reuters.com:*:nL1N1342K1
* Investors have been pulling out of gold. Assets in SPDR
Gold Trust GLD , the top gold-backed exchange-traded fund, to
663.43 tonnes on Tuesday - the lowest since September 2008.
* The technical picture for gold is weak, and the next
support is at the 5-1/2-year trough of $1,077 an ounce hit in
July, analysts have said. urn:newsml:reuters.com:*:nL1N1312D3
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* The euro nursed broad losses early on Wednesday as
political uncertainty in Portugal provided an excuse to sell in
a market already bracing for further monetary policy easing from
the European Central Bank.
DATA AHEAD (GMT)
0530 China Industrial output Oct
0530 China Retail sales Oct
0530 China Urban investment Oct
0700 Germany Wholesale price index Oct
PRICES AT 0032 GMT
Metal Last Change Pct chg
Spot gold 1088.8 -0.71 -0.07
Spot silver 14.43 0.02 0.14
Spot platinum 899.74 1.24 0.14
Spot palladium 595 0.03 0.01
Comex gold 1088.3 -0.2 -0.02
Comex silver 14.39 0.034 0.24
COMEX gold and silver contracts show the
most active months