SINGAPORE, Dec 8 (Reuters) - Gold struggled to recover from
overnight losses on Tuesday on expectations of a Federal Reserve
rate hike next week and a robust dollar.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,071.52 an ounce
by 0009 GMT. It fell as much as 1.6 percent on Monday to hit a
session low of $1,069.66.
* Friday's strong U.S. nonfarm payrolls data supported
widely held market views that the Fed would hike interest rates
for the first time in nearly a decade later this month.
* Gold gained 2.3 percent on Friday on short-covering
immediately after the data, but with the focus back on the rate
rise next week, investors sold off the metal on Monday.
* The dollar extended gains against a basket of major
currencies on Monday, helped by the jobs data and the looming
rate hike, further weighing on bullion. USD/
* Higher rates tend to drag on non-interest-paying gold by
increasing the opportunity cost of holding it, while boosting
the dollar.
* Bullion has lost about 9.5 percent for the year, its third
straight annual decline, on expectations of the rate hike.
* Investor sentiment has been downbeat. Assets in SPDR Gold
Trust GLD , the world's largest gold-backed exchange-traded
fund, tumbled 0.65 percent to 634.63 tonnes on Monday, the
lowest since September 2008.
* Elsewhere, China likely added nearly 21 tonnes of gold to
its reserves in November, according to Reuters calculations from
central bank data on Monday.
* The central bank's biggest purchase in five months failed
to provide much support for the gold price.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Oil prices skidded to their lowest level in nearly seven
years on Monday as a global glut showed no signs of abating.
Stock markets fell. MKTS/GLOB
DATA AHEAD (GMT)
0200 China Trade data Nov
1000 Euro zone Revised GDP Q3
1100 U.S. NFIB business optimism Nov
PRICES AT 0009 GMT
Metal Last Change Pct chg
Spot gold 1071.52 1.53 0.14
Spot silver 14.25 0.03 0.21
Spot platinum 853.99 0.49 0.06
Spot palladium 553.75 4.53 0.82
Comex gold 1071.1 -4.1 -0.38
Comex silver 14.24 -0.092 -0.64
COMEX gold and silver contracts show the
most active months
overnight losses on Tuesday on expectations of a Federal Reserve
rate hike next week and a robust dollar.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,071.52 an ounce
by 0009 GMT. It fell as much as 1.6 percent on Monday to hit a
session low of $1,069.66.
* Friday's strong U.S. nonfarm payrolls data supported
widely held market views that the Fed would hike interest rates
for the first time in nearly a decade later this month.
* Gold gained 2.3 percent on Friday on short-covering
immediately after the data, but with the focus back on the rate
rise next week, investors sold off the metal on Monday.
* The dollar extended gains against a basket of major
currencies on Monday, helped by the jobs data and the looming
rate hike, further weighing on bullion. USD/
* Higher rates tend to drag on non-interest-paying gold by
increasing the opportunity cost of holding it, while boosting
the dollar.
* Bullion has lost about 9.5 percent for the year, its third
straight annual decline, on expectations of the rate hike.
* Investor sentiment has been downbeat. Assets in SPDR Gold
Trust GLD , the world's largest gold-backed exchange-traded
fund, tumbled 0.65 percent to 634.63 tonnes on Monday, the
lowest since September 2008.
* Elsewhere, China likely added nearly 21 tonnes of gold to
its reserves in November, according to Reuters calculations from
central bank data on Monday.
* The central bank's biggest purchase in five months failed
to provide much support for the gold price.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Oil prices skidded to their lowest level in nearly seven
years on Monday as a global glut showed no signs of abating.
Stock markets fell. MKTS/GLOB
DATA AHEAD (GMT)
0200 China Trade data Nov
1000 Euro zone Revised GDP Q3
1100 U.S. NFIB business optimism Nov
PRICES AT 0009 GMT
Metal Last Change Pct chg
Spot gold 1071.52 1.53 0.14
Spot silver 14.25 0.03 0.21
Spot platinum 853.99 0.49 0.06
Spot palladium 553.75 4.53 0.82
Comex gold 1071.1 -4.1 -0.38
Comex silver 14.24 -0.092 -0.64
COMEX gold and silver contracts show the
most active months