SINGAPORE, Oct 7 (Reuters) - Gold held close to its highest
in nearly two weeks on Wednesday, as more sluggish U.S. economic
data supported investor views that the Federal Reserve will
delay a rate hike to next year.
FUNDAMENTALS
* Spot gold was little changed at $1,147.40 an ounce
by 0039 GMT. The metal climbed to $1,151.20 in the previous
session, its highest since Sept. 24.
* Data on Tuesday showed that U.S. exports took a hit from
an ailing global economy in August and imports from China
surged, fuelling the largest expansion of America's trade
deficit in five months.
* The data, following a weak nonfarm payrolls report last
week, showed the U.S. economy's vulnerabilities to a strong
dollar and weak demand in foreign markets, which could impose
further caution on the Fed's plans to hike interest rates for
the first time in nearly a decade.
* Higher rates could dent demand for non-interest-paying
gold.
* Fed Chair Janet Yellen said last month she expected the
U.S. central bank to begin raising rates this year, but weak
U.S. economic data since then and caution about the global
economy has prompted many to push out expectations.
* The International Monetary Fund cut its global growth
forecasts for a second time this year on Tuesday, citing weak
commodity prices and a slowdown in China and warned that
policies aimed at increasing demand were needed.
* The Fed should be communicating its views of the economy
well enough that markets will not be taken by surprise by an
eventual interest-rate hike, San Francisco Fed President John
Williams said on Tuesday.
* Among other precious metals, silver XAG= rose for a
fourth straight session, trading near a 3-1/2-month high of
$16.08 reached in the previous session.
* Platinum XPT= was also higher for a fourth day, while
palladium XPD= was trading near its highest since June.
* In mining news, South Africa's Sibanye Gold SGLJ.J has
offered $294 million to buy Aquarius Platinum AQP.L AQPJ.J ,
making its second big bet on a platinum sector hammered by
falling prices and rising costs.
MARKET NEWS
* The yen nursed losses against most of its peers early on
Wednesday and is likely to stay on the defensive in case the
Bank of Japan surprises by injecting fresh stimulus after its
policy review later in the day.
DATA AHEAD (GMT)
0600 Germany Industrial output Aug
0645 France Trade data Aug
1900 U.S. Consumer credit Aug
PRICES AT 0039 GMT
Metal Last Change Pct chg
Spot gold 1147.4 0.7 0.06
Spot silver 15.9 0.03 0.19
Spot platinum 935.24 1.79 0.19
Spot palladium 705.5 3 0.43
Comex gold 1147.4 1 0.09
Comex silver 15.93 -0.054 -0.34
COMEX gold and silver contracts show the
most active months