PRECIOUS-Gold poised for 6th straight weekly drop on Fed rate hike view

Published 2015-11-26, 07:54 p/m
© Reuters.  PRECIOUS-Gold poised for 6th straight weekly drop on Fed rate hike view
XAU/USD
-
XAG/USD
-
BAC
-
GC
-
SI
-
SINGAPORE, Nov 27 (Reuters) - Gold hovered close to its
lowest level in nearly six years on Friday, on track for a sixth
straight weekly decline, weakened by the strength in the dollar
and expectations of a U.S. interest rate hike next month.

FUNDAMENTALS
* Spot gold XAU= was steady at $1,072.20 an ounce by 0041
GMT, after closing flat on Thursday as liquidity was thin due to
the U.S. Thanksgiving holiday.
* The metal is down 0.5 percent for the week after dropping
to $1,064.95 last week, its lowest since February 2010.
* U.S. gold futures GCcv1 were also headed for a sixth
consecutive weekly decline. Silver XAG= looked set to post a 1
percent weekly gain, snapping a five-week losing streak.
* Bullion has been pressured by a robust dollar, which is
trading near an eight-month high against a basket of major
currencies, boosted by euro weakness and prospects of higher
U.S. rates. USD/
* The Federal Reserve is widely expected to hike U.S. rates
for the first time in nearly a decade when it meets next in
December.
* Investors believe higher rates could dent demand for
non-yielding bullion, while boosting the dollar.
* Precious metals funds posted their biggest net outflow
last week in around four months, while investors kept up the
rapid pace of inflows into money market funds, Bank of America (N:BAC)
Merrill Lynch said on Thursday.
* India's gold buying in the key December quarter is likely
to fall to the lowest level in eight years, hurt by poor
investment demand and back-to-back droughts that have slashed
earnings for the country's millions of farmers.
* China's net gold imports from main conduit Hong Kong fell
in October from a 10-month high reached in the previous month,
data showed on Thursday.
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET NEWS
* The dollar, euro and yen found themselves in familiar
territory early on Friday, having shuffled sideways in thin
trade with U.S. markets shut for the Thanksgiving Day holiday.
MKTS/GLOB

DATA AHEAD (GMT)
0700 Germany Import prices Oct
0745 France Consumer spending Oct
0745 France Producer prices Oct
1000 Euro zone Business climate Nov
1200 Germany GfK consumer sentiment Dec

PRICES AT 0041 GMT
Metal Last Change Pct chg

Spot gold 1072.2 0.9 0.08
Spot silver 14.3 0.05 0.35
Spot platinum 853.15 2.65 0.31
Spot palladium 555.65 0.15 0.03
Comex gold 1071.3 1.3 0.12
Comex silver 14.255 0.097 0.69

COMEX gold and silver contracts show the
most active months

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.