MANILA, Aug 10 (Reuters) - Gold opened the week down on
Monday, trading close to a 5-1/2-year low, as the U.S. dollar
firmed after solid U.S. job gains in July suggested the Federal
Reserve could raise interest rates as early as next month.
FUNDAMENTALS
* Spot gold XAU= had dropped 0.2 percent to $1,090.25 an
ounce by 0041 GMT. The metal fell for a seventh week in a row
last week, its longest such retreat since 1999, having struggled
to pull away from a 5-1/2-year trough of $1,077 reached during a
late rout in July.
* U.S. gold for December delivery GCcv1 fell 0.4 percent
to $1,089.70 an ounce.
* U.S. nonfarm payrolls increased 215,000 in July and wages
rebounded after a surprise stall in the prior month, signs of an
improving economy that opened the door wider to a U.S. interest
rate increase next month. The unemployment rate held at a
seven-year low of 5.3 percent.
* Payrolls data for May and June was revised to show 14,000
more jobs created than previously reported, and analysts say the
report "easily clears the hurdle needed to keep the Fed on track
for a September rate hike". ID:nLNN7JEBEB
* A looming U.S. rate rise, the first since 2006, had
weighed on non-interest yielding gold, pulling more funds to the
dollar.
* Top gold consumer China is under growing pressure to
further stimulate its economy after disappointing data over the
weekend showed another heavy fall in factory-gate prices and a
surprise slump in exports. ID:nL3N10K02J
* China's foreign exchange reserves, the world's largest,
fell by $42.5 billion in July to $3.65 trillion, the sharpest
monthly drop since March amid signs of capital outflows. The
value of China's gold reserves dropped to $59.24 billion from
$62.4 billion.
* The decline in holdings of SPDR Gold Trust GLD , the
world's largest gold-backed exchange-traded fund, continued,
hitting 21.47 million ounces on Friday, the lowest since
September 2008. GOL/ETF
* The South African Chamber of Mines said all unions
representing workers in the gold sector have rejected the final
wage increase offer from bullion producers, setting the stage
for protracted negotiations. ID:nL5N10I259
* For the top stories on metals and other news, click
TOP/MTL or GOL/
MARKET NEWS
* The dollar remained close to a near four-month high
against a basket of currencies in early Asian trade following
the upbeat U.S. employment data. USD/
* Asian shares were on the defensive after the data from
China. MKTS/GLOB
DATA AHEAD (GMT)
0830 Euro zone Sentix index Aug
1400 U.S. Employment trends Aug