SINGAPORE, Dec 9 (Reuters) - Gold clung to small overnight
gains on Wednesday, supported by softness in the dollar, but the
metal's upside was limited as investors anticipated a Federal
Reserve rate hike next week.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,075.20 an ounce
by 0042 GMT, after rising 0.4 percent on Tuesday as the dollar
slid against a basket of major currencies. The metal is less
than $30 away from a near-six-year low reached last week.
* Bullion traders are not optimistic of a sustained rally in
prices as the Fed is widely expected to raise U.S. rates for the
first time in nearly a decade at its next policy meet on Dec.
15-16.
* Higher rates are expected to dent demand for
non-interest-paying gold, which has already lost 9 percent of
its value this year in anticipation of the rate hike.
* Investors are boosting bets gold will soon drop to $1,000
an ounce, options data show, ahead of next week's Fed meeting.
* A slide in commodity prices, particularly crude oil, is
also weighing on gold. Crude has fallen to its lowest in nearly
seven years as OPEC continues to pump near-record amounts of oil
to defend market share. O/R
* Weakness in oil could trigger fears of deflation, a
bearish factor for gold, which is often used as a hedge against
oil-led inflation.
* In the physical markets, a bullion association in India is
planning to launch the country's first physical gold trading
exchange, in an attempt to bring transparency to the market for
the precious metal in the world's second biggest consumer.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Stock markets worldwide slipped on Tuesday, weighed down
by weak China trade figures.
* The currencies of major commodity producers such as
Australia and Canada nursed hefty losses early on Wednesday
after suffering big falls in the past two days from a selloff in
oil and bulk commodities.
DATA AHEAD (GMT)
0130 China Consumer prices Nov
0130 China Producer prices Nov
0700 Germany Trade data Oct
1500 U.S. Wholesale inventories Oct
PRICES AT 0042 GMT
Metal Last Change Pct chg
Spot gold 1075.2 0.89 0.08
Spot silver 14.14 -0.017 -0.12
Spot platinum 849 3.4 0.4
Spot palladium 548.22 2.66 0.49
Comex gold 1074.6 -0.7 -0.07
Comex silver 14.12 0.004 0.03
COMEX gold and silver contracts show the
most active months
gains on Wednesday, supported by softness in the dollar, but the
metal's upside was limited as investors anticipated a Federal
Reserve rate hike next week.
FUNDAMENTALS
* Spot gold XAU= was little changed at $1,075.20 an ounce
by 0042 GMT, after rising 0.4 percent on Tuesday as the dollar
slid against a basket of major currencies. The metal is less
than $30 away from a near-six-year low reached last week.
* Bullion traders are not optimistic of a sustained rally in
prices as the Fed is widely expected to raise U.S. rates for the
first time in nearly a decade at its next policy meet on Dec.
15-16.
* Higher rates are expected to dent demand for
non-interest-paying gold, which has already lost 9 percent of
its value this year in anticipation of the rate hike.
* Investors are boosting bets gold will soon drop to $1,000
an ounce, options data show, ahead of next week's Fed meeting.
* A slide in commodity prices, particularly crude oil, is
also weighing on gold. Crude has fallen to its lowest in nearly
seven years as OPEC continues to pump near-record amounts of oil
to defend market share. O/R
* Weakness in oil could trigger fears of deflation, a
bearish factor for gold, which is often used as a hedge against
oil-led inflation.
* In the physical markets, a bullion association in India is
planning to launch the country's first physical gold trading
exchange, in an attempt to bring transparency to the market for
the precious metal in the world's second biggest consumer.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Stock markets worldwide slipped on Tuesday, weighed down
by weak China trade figures.
* The currencies of major commodity producers such as
Australia and Canada nursed hefty losses early on Wednesday
after suffering big falls in the past two days from a selloff in
oil and bulk commodities.
DATA AHEAD (GMT)
0130 China Consumer prices Nov
0130 China Producer prices Nov
0700 Germany Trade data Oct
1500 U.S. Wholesale inventories Oct
PRICES AT 0042 GMT
Metal Last Change Pct chg
Spot gold 1075.2 0.89 0.08
Spot silver 14.14 -0.017 -0.12
Spot platinum 849 3.4 0.4
Spot palladium 548.22 2.66 0.49
Comex gold 1074.6 -0.7 -0.07
Comex silver 14.12 0.004 0.03
COMEX gold and silver contracts show the
most active months