MANILA, July 27 (Reuters) - Gold fell for a third session on
Monday, trading not far above its lowest level since early 2010,
with expectations of further losses in the metal as the Federal
Reserve moves closer to raising interest rates.
The Fed will hold a policy meeting this week at which
policymakers are likely to provide more signals pointing to a
rate hike later in the year as the U.S. economy strengthens.
FUNDAMENTALS
* Spot gold XAU= was down 0.3 percent at $1,095.50 an
ounce by 0035 GMT, after falling for a fifth straight week.
* Bullion lost more than 3 percent last week following a
rout, accompanied by big volumes in New York and Shanghai that
began on Monday and pulled the price to as low as $1,077 on
Friday, its cheapest since February 2010.
* U.S. gold for August delivery GCcv1 gained 0.9 percent
to $1,095.10 an ounce.
* Gold is expected to struggle for the rest of this year
after sliding to five-year lows on expectations of higher U.S.
interest rates, before snapping three years of losses in 2016, a
Reuters poll showed. ID:nL5N1022QA
* As gold prices slumped, holdings of the world's biggest
gold-backed exchange-traded fund, the SPDR Gold Trust GLD ,
fell for a seventh day on Friday to 21.87 million ounces, the
lowest since September 2008. GOL/ETF
* U.S. speculators turned bearish on Comex gold for the
first time in at least a decade in the week ended July 21 as a
selloff in Shanghai and New York triggered the biggest rout in
years, U.S. government data showed on Friday. ID:nL1N1041ZT
* Germany cut its gold holdings by 2.395 tonnes last month,
data from the International Monetary Fund showed, while both
Russia and Kazakhstan continued to add to their reserves.
ID:nL5N10437B
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TOP/MTL or GOL/
MARKET NEWS
* Asian shares began the week on a plaintive note amid
losses on Wall Street and worries over China, while investors
braced for a Federal Reserve meeting that might take another
small step toward lifting U.S. interest rates. MKTS/GLOB
* The dollar was subdued against the euro and yen after a
drop in U.S. shares and bond yields dimmed its allure, with
markets focused on whether the upcoming Federal Reserve policy
meeting can lift the greenback. USD/
DATA AHEAD (GMT)
0600 Germany Import prices June
0800 Germany Ifo business climate July
1230 U.S. Durable goods orders June