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PRECIOUS-Gold holds near two-week highs as cautious Yellen hurts dollar

Published 2016-06-06, 09:11 p/m
© Reuters.  PRECIOUS-Gold holds near two-week highs as cautious Yellen hurts dollar
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BENGALURU, June 7 (Reuters) - Gold held steady near two-week
highs on Tuesday, benefiting from a weaker dollar, as cautious
remarks by Federal Reserve chair Janet Yellen gave few
indications about the timing of U.S. rate increases.

FUNDAMENTALS
* Spot gold XAU= was up 0.1 percent at $1,245.76 per ounce
by 0057 GMT. It reached a high of $1,246.21, within sight of
$1,250.76 last touched on May 24.
* U.S. gold GCcv1 rose 0.1 percent at $1,248.50
* Yellen on Monday gave a largely upbeat assessment of the
U.S. economic outlook and said interest rate hikes are coming
but, in an omission that stood out to some investors, gave
little sense of when.
* Two more top U.S. central bankers on Monday joined a
chorus of policymakers all but dismissing the possibility of an
interest rate hike next week, but professing their continued
belief a hike soon after will be possible.
* The Fed said on Monday that its index on labor market
conditions fell to its lowest since May 2009, reinforcing a
perception of slowing job growth following last week's
stunningly weak payrolls report.
* The dollar index, which tracks the U.S. currency against a
basket of six major rivals, nudged up 0.1 percent to 93.959
.DXY , but it remained within sight of its overnight low of
93.745, its weakest level since May 11.
* Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.03 percent to 881.15
tonnes on Monday. GOL/ETF
* South Africa's Northam Platinum NHMJ.J suspended
production at its Zondereinde mine after a worker was stabbed to
death there during a fight between members of two different
unions, the company said on Monday.
* A weaker economy in Kyrgyzstan is to blame for the Central
Asian state "turning up the heat" on Centerra Gold Inc CG.TO
in recent weeks as the country guns for a bigger slice of the
miner's profits, Centerra's chief executive said on Monday.

* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET REPORT
* Asian shares hit a five-week high on Tuesday as MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.5 percent, while Japan's Nikkei average
.N225 firmed 0.2 percent. MKTS/GLOB

DATA AHEAD (GMT)
0600 Germany industrial output Apr
0645 France trade data Apr
0900 Euro zone revised GDP Q1
1230 U.S. revised labor costs Q1

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