SINGAPORE, Dec 18 (Reuters) - Gold steadied on Friday but
largely retained losses made a day earlier when the metal
suffered its biggest slide in five months after the Federal
Reserve hiked U.S. rates for the first time in nearly a decade.
FUNDAMENTALS
* Spot gold XAU= ticked up 0.3 percent to $1,053.96 an
ounce by 0051 GMT as the dollar eased on profit taking following
sharp gains.
* The metal slid 2 percent on Thursday, its biggest one day
slide in five months. It is down 2 percent for the week in its
worst weekly performance in six weeks.
* Gold has come under intense sell off since the Federal
Reserve raised the range of its benchmark interest rate by a
quarter of a percentage point on Wednesday, ending a lengthy
debate about whether the economy was strong enough to withstand
higher borrowing costs.
* The move sent the dollar to a two-week high on Thursday
against a basket of major currencies.
* On the other hand, gold saw little interest, with
investors sending the yellow metal to $1,047.25 in the previous
session, close to a near-six-year low.
* Gold has tumbled 11 percent this year, largely on
uncertainty around the timing of the rate rise and on fears that
higher rates would hit demand for the non-interest-paying metal.
* Many are predicting further drops. Gold is likely to test
the key $1,000 level soon, technical analysts said.
* Assets in SPDR Gold Trust GLD , the world's top
gold-backed exchange-traded fund, fell 0.70 percent to 630.17
tonnes on Thursday, the lowest since September 2008.
* Hedge funds' net short positions in COMEX gold futures
reached record levels this month.
* Other precious metals were all struggling due to the
robust dollar.
* Silver XAG= held on to an overnight slump of 3 percent,
its biggest one day drop in nearly three months, while platinum
XPT= eased after posting its biggest slide in a year. Both the
metals were headed for weekly declines.
* With a 2 percent gain, palladium XPD= was the best
performer among the precious metals this week, though it did
decline overnight by 2.5 percent.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares took their cue from Wall Street and slipped
on Friday, but were still on track for gains in a week marked by
a depreciating yuan in China and the first U.S. interest rate
hike in nearly a decade. MKTS/GLOB
DATA AHEAD (GMT)
0130 China House prices Nov
0745 France Producer prices Nov
0900 Euro zone Current account Oct
1445 U.S. Markit services PMI flash Dec
PRICES AT 0051 GMT
Metal Last Change Pct chg
Spot gold 1053.96 2.6 0.25
Spot silver 13.778 0.078 0.57
Spot platinum 839.24 -4.43 -0.53
Spot palladium 553.75 -0.05 -0.01
Comex gold 1053.4 3.8 0.36
Comex silver 13.75 0.047 0.34
COMEX gold and silver contracts show the
most active months
largely retained losses made a day earlier when the metal
suffered its biggest slide in five months after the Federal
Reserve hiked U.S. rates for the first time in nearly a decade.
FUNDAMENTALS
* Spot gold XAU= ticked up 0.3 percent to $1,053.96 an
ounce by 0051 GMT as the dollar eased on profit taking following
sharp gains.
* The metal slid 2 percent on Thursday, its biggest one day
slide in five months. It is down 2 percent for the week in its
worst weekly performance in six weeks.
* Gold has come under intense sell off since the Federal
Reserve raised the range of its benchmark interest rate by a
quarter of a percentage point on Wednesday, ending a lengthy
debate about whether the economy was strong enough to withstand
higher borrowing costs.
* The move sent the dollar to a two-week high on Thursday
against a basket of major currencies.
* On the other hand, gold saw little interest, with
investors sending the yellow metal to $1,047.25 in the previous
session, close to a near-six-year low.
* Gold has tumbled 11 percent this year, largely on
uncertainty around the timing of the rate rise and on fears that
higher rates would hit demand for the non-interest-paying metal.
* Many are predicting further drops. Gold is likely to test
the key $1,000 level soon, technical analysts said.
* Assets in SPDR Gold Trust GLD , the world's top
gold-backed exchange-traded fund, fell 0.70 percent to 630.17
tonnes on Thursday, the lowest since September 2008.
* Hedge funds' net short positions in COMEX gold futures
reached record levels this month.
* Other precious metals were all struggling due to the
robust dollar.
* Silver XAG= held on to an overnight slump of 3 percent,
its biggest one day drop in nearly three months, while platinum
XPT= eased after posting its biggest slide in a year. Both the
metals were headed for weekly declines.
* With a 2 percent gain, palladium XPD= was the best
performer among the precious metals this week, though it did
decline overnight by 2.5 percent.
* For the top stories on metals and other news, click
TOP/MTL or GOL
MARKET NEWS
* Asian shares took their cue from Wall Street and slipped
on Friday, but were still on track for gains in a week marked by
a depreciating yuan in China and the first U.S. interest rate
hike in nearly a decade. MKTS/GLOB
DATA AHEAD (GMT)
0130 China House prices Nov
0745 France Producer prices Nov
0900 Euro zone Current account Oct
1445 U.S. Markit services PMI flash Dec
PRICES AT 0051 GMT
Metal Last Change Pct chg
Spot gold 1053.96 2.6 0.25
Spot silver 13.778 0.078 0.57
Spot platinum 839.24 -4.43 -0.53
Spot palladium 553.75 -0.05 -0.01
Comex gold 1053.4 3.8 0.36
Comex silver 13.75 0.047 0.34
COMEX gold and silver contracts show the
most active months