SINGAPORE, Sept 29 (Reuters) - Gold was hovering little
changed on Tuesday after a two-day losing streak, as fears over
a looming U.S. rate hike offset any safe-haven bids from weaker
equities, while platinum hit a fresh 6-1/2-year low on fears of
reduced auto sector demand.
FUNDAMENTALS
* Spot gold was little changed at $1,132.50 an ounce
by 0031 GMT, after dropping 1.2 percent in the previous session.
* A flurry of planned appearances this week by Federal
Reserve officials began on Monday, but conflicting views by
policymakers raised more questions about the U.S. central bank's
ability to manage its message at a critical juncture.
* William Dudley, head of the New York Fed, and John
Williams, head of the San Francisco Fed, both signaled support
for a rate hike this year, saying they expect inflation to rise
towards the Fed's 2-percent target. But Charles Evans, head of
the Chicago Fed, took a far more dovish view, calling for rates
to stay near zero until mid-2016.
* Several other Fed officials are scheduled to speak this
week, keeping the focus firmly on U.S. monetary policy. Traders
will also be closely monitoring data, including non-farm
payrolls due on Friday, to gauge the strength of the economy.
* Non-interest-paying gold has lost about 4 percent this
year on fears that demand could take a hit in a higher interest
rate environment.
* The rate hike fears outweighed any benefit that bullion
could have received from a drop in the U.S. dollar and equities.
* Global equity markets and commodities slumped on Monday,
pulled lower by worry over the economic health of China and
other big emerging markets.
* Market participants have been cautious ahead of a week of
key economic data, including euro zone inflation on Wednesday,
Chinese industrial and service sector PMIs on Thursday and U.S.
jobs figures on Friday.
* Among other precious metals, platinum XPT= fell to
$906.50 an ounce on Tuesday, its lowest since January 2009. The
metal has been hit by fears the Volkswagen (XETRA:VOWG) emissions scandal
could dent demand for diesel cars, in which it is used in
catalysts.
MARKET NEWS
* The yen was broadly firmer early on Tuesday, underpinned
by safety flows stemming from a selloff in global equities, a
risk-off mood that took a heavy toll on commodity currencies.
PRICES AT 0031 GMT
Metal Last Change Pct chg
Spot gold 1132.5 0.85 0.08
Spot silver 14.545 -0.015 -0.1
Spot platinum 910.95 -5.05 -0.55
Spot palladium 644.47 0.47 0.07
Comex gold 1132.4 0.7 0.06
Comex silver 14.56 0.022 0.15
Euro 1.1247
DXY 95.929
COMEX gold and silver contracts show the
most active months