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PRECIOUS-Gold near 3-1/2-month high on bets Fed to delay rate hike
October 15, 2015 / 12:40 AM / 2 years ago

PRECIOUS-Gold near 3-1/2-month high on bets Fed to delay rate hike

SINGAPORE, Oct 15 (Reuters) - Gold held near a 3-1/2-month
high on Thursday as sluggish economic data from China and the
United States stoked speculation the Federal Reserve will not
raise rates this year.
    
    FUNDAMENTALS
    * Spot gold was little changed at $1,185 an ounce by
0022 GMT following a four-day rally. The metal climbed to $1,190
on Tuesday, its highest since June 22.
    * Data on Wednesday showed U.S. retail sales barely rose in
September and producer prices recorded their biggest decline in
eight months, indicating the economy was losing momentum amid
slowing global growth. 
    * Earlier in the day, China data showed consumer inflation
cooled more than expected in September while producer prices
extended their slide to a 43rd straight month, adding to
concerns about deflationary pressures in the world's
second-largest economy.
    * Investors believe the weakening backdrop in the U.S. and
elsewhere may cause Fed policymakers to delay the first rate
increase in nearly a decade, earlier expected late in 2015. 
    * Gold is a non-yielding asset and tends to benefit from
ultra-low rates.
    * It also benefited as the dollar on Wednesday slumped to
its lowest since late August against a basket of major
currencies. A weaker dollar makes gold cheaper for holders of
other currencies. 
    * Elsewhere, Elliott Management Chief Executive Paul Singer
said on Wednesday every institutional portfolio should be 5-10
percent invested in gold to protect against zero interest rates
that are degrading the value of paper currency.    
    * Among other precious metals, silver hit a 3-1/2-month high
of $16.18 an ounce on Thursday before easing slightly. Platinum
 climbed to a five-week high of $999, before giving up
gains to trade down 0.2 percent. Palladium edged up. 
    * For the top stories on metals and other news, click
 or 
    
    MARKET NEWS
    * Global equity markets slid for a second day on Wednesday
on expectations the Fed will not raise interest rates until next
year. 
    
    DATA AHEAD (GMT)
    1230 U.S. Consumer prices Sep 
    1230 U.S. New York Fed manufacturing Oct 
    1230 U.S. Weekly jobless claims 
    1400 U.S. Philly Fed business index Oct

    PRICES AT 0022 GMT
 Metal            Last     Change  Pct chg
                                          
 Spot gold           1185    0.19     0.02
 Spot silver        16.08   -0.04    -0.25
 Spot platinum      993.9    -2.1    -0.21
 Spot palladium    699.25    1.75     0.25
 Comex gold        1184.9     5.1     0.43
 Comex silver       16.11  -0.007    -0.04
                                          
 COMEX gold and silver contracts show the
 most active months
 
    
    

 (Reporting by A. Ananthalakshmi; Editing by Michael Perry)

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