* Gold falls towards lowest in nearly six years
* Silver, platinum, palladium head for weekly declines
* Chinese buying unable to support prices
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Nov 27 (Reuters) - Gold dipped towards its lowest
level in nearly six years on Friday and was on track for a sixth
straight weekly decline, weakened by a robust dollar and
expectations of a U.S. interest rate hike next month.
The dollar was 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.
"Once again, gold is unable to find a bid. Any small rally
that we see is being sold into," said a Sydney-based precious
metals trader.
Buying out of top consumer China has been good but has been
unable to support prices, the trader said.
Spot gold XAU= had fallen 0.4 percent to $1,067.35 an
ounce by 0644 GMT, edging close to $1,064.95 reached last week,
the metal's lowest since February 2010.
The metal is down nearly 1 percent for the week. U.S. gold
futures GCcv1 were also headed for a sixth consecutive weekly
decline.
Buying in China has picked up in recent days due to the
lower prices. Premiums on the Shanghai Gold Exchange, a proxy
for demand in top consumer China, were trading at $5-$6 an
ounce, versus $3-$4 at the beginning of the month.
However, other indicators of physical demand were not
upbeat. 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.
Investor sentiment was weak with precious metals funds
posting their biggest net outflow last week in around four
months, according to Bank of America Merrill Lynch (N:BAC).
Among other precious metals, silver XAG= , platinum XPT=
and palladium XPD= were all heading for weekly declines.
PRICES AT 0644 GMT
Metal Last Change Pct chg
Spot gold 1067.35 -3.95 -0.37
Spot silver 14.08 -0.17 -1.19
Spot platinum 844.25 -6.25 -0.73
Spot palladium 550.05 -5.45 -0.98
Comex gold 1067 -3 -0.28
Comex silver 14.08 -0.078 -0.55
COMEX gold and silver contracts show the
most active months
* Silver, platinum, palladium head for weekly declines
* Chinese buying unable to support prices
(Updates prices)
By A. Ananthalakshmi
SINGAPORE, Nov 27 (Reuters) - Gold dipped towards its lowest
level in nearly six years on Friday and was on track for a sixth
straight weekly decline, weakened by a robust dollar and
expectations of a U.S. interest rate hike next month.
The dollar was 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.
"Once again, gold is unable to find a bid. Any small rally
that we see is being sold into," said a Sydney-based precious
metals trader.
Buying out of top consumer China has been good but has been
unable to support prices, the trader said.
Spot gold XAU= had fallen 0.4 percent to $1,067.35 an
ounce by 0644 GMT, edging close to $1,064.95 reached last week,
the metal's lowest since February 2010.
The metal is down nearly 1 percent for the week. U.S. gold
futures GCcv1 were also headed for a sixth consecutive weekly
decline.
Buying in China has picked up in recent days due to the
lower prices. Premiums on the Shanghai Gold Exchange, a proxy
for demand in top consumer China, were trading at $5-$6 an
ounce, versus $3-$4 at the beginning of the month.
However, other indicators of physical demand were not
upbeat. 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.
Investor sentiment was weak with precious metals funds
posting their biggest net outflow last week in around four
months, according to Bank of America Merrill Lynch (N:BAC).
Among other precious metals, silver XAG= , platinum XPT=
and palladium XPD= were all heading for weekly declines.
PRICES AT 0644 GMT
Metal Last Change Pct chg
Spot gold 1067.35 -3.95 -0.37
Spot silver 14.08 -0.17 -1.19
Spot platinum 844.25 -6.25 -0.73
Spot palladium 550.05 -5.45 -0.98
Comex gold 1067 -3 -0.28
Comex silver 14.08 -0.078 -0.55
COMEX gold and silver contracts show the
most active months