SINGAPORE, April 14 (Reuters) - Gold extended losses into a
third straight session on Thursday as the dollar strengthened
and stock markets rose on encouraging economic data from China.
FUNDAMENTALS
* Spot gold XAU= had dropped 0.7 percent to $1,233.71 an
ounce by 0045 GMT, after falling 1 percent on Wednesday. The
metal hit a three-week high of $1,262.60 earlier this week as
stocks and the dollar tumbled.
* U.S. gold futures GCcv1 declined 1 percent. Silver
futures SIcv1 also tumbled over 1 percent snapping a five-day
winning streak.
* The U.S. dollar rallied and major stock markets rose on
Wednesday after JPMorgan's results beat lowered expectations and
as the upbeat Chinese trade data offered hope Asia's biggest
economy is stabilizing. MKTS/GLOB
* A drop in oil prices also hurt gold. Oil futures fell from
fresh four-month highs in choppy trading on Wednesday as
comments from Russia's energy minister added to doubts a
producer meeting set for Sunday in Doha to discuss freezing
output would yield a positive outcome. O/R
* Hawkish comments from Federal Reserve officials added to
the uncertainty over U.S. monetary policy.
* Gold has rallied 16 percent this year on waning
expectations of a U.S. interest rate hike.
* But Richmond Fed President Jeffrey Lacker, San Francisco
Fed President John Williams and Philadelphia Fed President
Patrick Harker all suggested this week that several hikes were
possible this year, cutting into gold's recent gains.
* Fed Chair Janet Yellen said she favours a cautious
approach to monetary policy because the U.S. central bank must
try to avoid making "big mistakes," according to an interview
published on Wednesday.
* U.S. retail sales unexpectedly fell in March as households
cut back on purchases of automobiles and other items, further
evidence that economic growth stumbled in the first quarter and
reinforcing Fed caution on rate hikes.
* Outflows from gold funds have also picked up pace. SPDR
Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 5.05 tonnes to
810.09 tonnes on Wednesday. GOL/ETF
* Elsewhere, Deutsche Bank AG DBKGn.DE has agreed to
settle U.S. litigation over allegations it illegally conspired
with Bank of Nova Scotia and HSBC Holdings Plc (LON:HSBA) to fix silver
prices at the expense of investors, a court filing on Wednesday
showed.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian stock markets rose to their highest level in more
than four months on Thursday, helped by optimism in the global
banking sector and hopes of stabilisation in the Chinese economy
after the solid trade data.
DATA AHEAD (GMT)
0900 Euro zone Inflation final Mar
1100 Bank of England announces interest rate decision
1230 U.S. Consumer prices Mar
1230 U.S. Weekly jobless claims
1530 U.S. Cleveland Fed CPI Mar
PRICES AT 0045 GMT
Metal Last Change Pct chg
Spot gold 1233.71 -9.05 -0.73
Spot silver 16.12 -0.074 -0.46
Spot platinum 987.55 -6.95 -0.7
Spot palladium 534.97 -7.53 -1.39
Comex gold 1235.7 -12.6 -1.01
Comex silver 16.145 -0.18 -1.1
COMEX gold and silver contracts show the most
active months