SINGAPORE, April 5 (Reuters) - Gold held losses from a
two-day decline on Tuesday on worries the Federal Reserve will
hike U.S. interest rates earlier than market expectations and on
outflows from bullion-backed exchange traded funds.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,215.55 an ounce
by 2345 GMT, after dropping 1.4 percent in the past two
sessions.
* Gold had posted its biggest quarterly rise in nearly 30
years in the March quarter, rallying 16 percent as expectations
faded that the Fed would move to normalize interest rates due to
concerns over the global economy. The U.S. central bank raised
rates in December for the first time in nearly a decade.
* The metal is highly exposed to rising rates, which lift
the opportunity cost of holding non-yielding assets, while
boosting the dollar.
* Gold's decline began after data on Friday showed non-farm
payrolls rising by 215,000 last month, higher than expectations
of 205,000, underscoring the strength in the U.S. economy.
* Boston Federal Reserve President Eric Rosengren, a usually
dovish U.S. central banker, said on Monday it was "surprising"
that futures markets currently imply only one or no
interest-rate hikes this year, a prediction he said could prove
"too pessimistic."
* Gold failed to get a lift from a softer dollar. USD/
* It was undermined by persistent outflows from SPDR Gold
Trust GLD , the top gold-backed exchange-traded fund.
* Assets of the fund fell 0.29 percent to 815.72 tonnes on
Monday. The fund last week experienced its first net weekly
outflow this year, after climbing to its highest in over two
years in March. GOL/ETF
* Physical markets did not offer much support. India's gold
imports in February fell 34 percent compared with the same
period last year, news agency NewsRise Financial reported on
Monday, citing a government official, as high prices and hopes
for a cut in import taxes kept buyers away.
* South Africa's Association of Mineworkers and Construction
Union (AMCU) said on Monday it plans to launch an indefinite
strike on Wednesday at Sibanye Gold SGLJ.J to demand higher
wages.
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TOP/MTL or GOL
PRICES AT 2345 GMT
Metal Last Change Pct chg
Spot gold 1215.55 0.9 0.07
Spot silver 14.953 0.083 0.56
Spot platinum 933.99 -5.01 -0.53
Spot palladium 546.97 -1.53 -0.28
Comex gold 1217.5 -1.8 -0.15
Comex silver 14.95 0.006 0.04
COMEX gold and silver contracts show the
most active months