MANILA, March 9 (Reuters) - Gold edged lower on Wednesday,
slipping with the euro as expectations that the European Central
Bank is almost certain to ease policy this week weighed on the
single currency.
FUNDAMENTALS
* Spot gold XAU= was down 0.6 percent at $1,253.46 an
ounce by 0128 GMT. Gold touched $1,279.60 last week, its
strongest since Feb. 3, 2015.
* U.S. gold for April delivery GCcv1 eased 0.7 percent to
$1,253.70 an ounce.
* Investors expect the European Central Bank to cut its
deposit rate by at least 10 basis points and expand its
asset-buying programme at its meeting on Thursday.
* Gold had been supported by fairly low expectations that
the Federal Reserve will raise U.S. interest rates at its March
15-16 policy meeting. The Fed lifted rates for the first time in
nearly a decade in December amid signs of strength in the U.S.
economy.
* The strength is particularly evident in the U.S. labor
market after a robust, forecast-beating 242,000 increase in
nonfarm payrolls in February. Gold has stood its ground despite
Friday's jobs data as many traders rule out the possibility of a
near-term hike in U.S. interest rates.
* Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, dropped to 25.4 million ounces
on Tuesday, but not far below 18-month highs reached last week.
GOL/ETF
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TOP/MTL or GOL
MARKET NEWS
* Asian shares retreated further from two-month highs as
lower oil prices and weak Chinese trade data revived concerns
about the health of the global economy. MKTS/GLOB
* As the euro wilted, the yen was broadly firmer with demand
for the safe-haven currency picking up after disappointing
Chinese trade data took the wind out of a global risk rally.
USD/
DATA AHEAD (GMT)
0930 Britain Industrial output Jan
1500 U.S. Wholesale inventories Jan