SINGAPORE, Sept 17 (Reuters) - Gold retained overnight gains
from its biggest jump in nearly a month on Thursday as sluggish
U.S. inflation data eased fears the Federal Reserve would hike
interest rates later this session.
FUNDAMENTALS
* Spot gold XAU= was holding steady at $1,119.40 an ounce
at 0045 GMT, near a one-week high of $1,124.30 reached in the
previous session. The metal gained 1.3 percent on Wednesday, its
biggest daily jump since Aug. 20.
* U.S. gold GCcv1 also held firm at $1,119.30, following a
1.5-percent gain overnight.
* Bullion got a boost as data on Wednesday showed U.S.
consumer prices unexpectedly fell in August, pointing to tame
inflation that complicates the Fed's decision whether to hike
interest rates.
* Signs of a disinflationary trend reasserting itself are in
stark contrast with a fairly healthy economy and a rapidly
tightening labour market, and highlight the dilemma Fed
officials face as they contemplate raising interest rates for
the first time in nearly a decade.
* The U.S. central bank kicked off a two-day policy meeting
on Wednesday, with a decision on interest rates expected at 1800
GMT Thursday.
* Expectations that the Fed would hike rates at this week's
meeting had already been lowered due to recent concerns over
slowing economic growth in China and volatility in financial
markets.
* In a Reuters poll of 80 economists, 45 said the Fed would
keep its benchmark interest rate between zero and 0.25 percent,
while 35 expected a hike.
* The uncertainty over the timing of a rate hike has weighed
on gold all year, sending it down over 6 percent. Higher rates
could curb demand for non-interest-paying bullion.
* Softness in the dollar, following the inflation data, also
supported gold prices.
* Among other precious metals, silver XAG= was holding
firm at $14.88, following a 3.5-percent jump in the previous
session, its biggest one-day jump since May. Platinum XPT=
edged higher for a third straight session.
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MARKET NEWS
* The dollar came under pressure in Asian trading on
Thursday. USD/
DATA AHEAD (GMT)
1230 U.S. Current account Q2
1230 U.S. Housing starts Aug
1230 U.S. Building permits Aug
1230 U.S. Weekly jobless claims
1400 U.S. Philly Fed business index Sep
1800 Fed releases statement after policy meeting
1830 Fed Chair Janet Yellen holds news conference
PRICES AT 0045 GMT
Metal Last Change Pct chg
Spot gold 1119.4 0.25 0.02
Spot silver 14.88 -0.01 -0.07
Spot platinum 970.7 2.46 0.25
Spot palladium 608.8 -0.2 -0.03
Comex gold 1119.3 0.3 0.03
Comex silver 14.88 -0.005 -0.03
Euro 1.1295
DXY 95.289
COMEX gold and silver contracts show the
most active months