MANILA, Aug 14 (Reuters) - Gold backed further away from a
three-week high early on Friday but was still set to end a
seven-week losing streak after China's yuan devaluation pushed
investors out of equities and into safe-haven assets.
Speculation that the weaker yuan could delay a U.S. interest
rate hike this year also benefited gold although China's central
bank said there was no reason for the yuan to fall further given
the country's strong economic fundamentals.
FUNDAMENTALS
* Spot gold XAU= was down 0.2 percent at $1,112.95 an
ounce by 0045 GMT, after peaking at $1,126.31 on Thursday, its
highest since July 20.
* Bullion has gained nearly 2 percent for the week so far,
after a seven-week slide that was its longest retreat since
1999.
* U.S. gold for December delivery GCcv1 eased 0.2 percent
to $1,113 an ounce.
* China's gold demand this year is expected to at least hold
steady with last year at just under 1,000 tonnes and will not
likely be dented by this week's currency devaluation, the World
Gold Council said.
* U.S. retail sales rebounded in July as households boosted
purchases of automobiles and a range of other goods, suggesting
the economy was growing solidly early in the third quarter and
bolstering the case for a Federal Reserve interest rate hike.
* The largest unions in South Africa's gold mining sector
declared disputes with producers after wage talks deadlocked,
sending the negotiations to a government mediator, a necessary
regulatory step before their members can go on strike.
* For the top stories on metals and other news, click
MARKET NEWS
* The dollar steadied after China's central bank said it saw
no reason for the yuan to fall any further. USD/
* Asian shares were subdued and on track for a steep weekly
loss in the wake of China's move to devalue its yuan earlier in
the week. MKTS/GLOB
DATA AHEAD (GMT)
0600 Germany GDP Q2
0900 Euro zone GDP Q2
0900 Euro zone Inflation final Jul
1315 U.S. Industrial output Jul
1400 U.S. Univ of Michigan sentiment index Aug