November 16, 2015 / 12:45 AM / 2 years ago

PRECIOUS-Gold rises on safe-haven bids after Paris attacks

SINGAPORE, Nov 16 (Reuters) - Gold rose on Monday as
investors sought safety in the metal following Friday's deadly
attacks in Paris and a risk-off sentiment that sent U.S. stock
futures lower.
    
    FUNDAMENTALS
    * Spot gold rose 0.6 percent to $1,089.40 an ounce by
0032 GMT. 
    * U.S. gold rose 1 percent to a session high of
$1,091.70. In the first 10 minutes of trade, just under 3,000
lots changed hands, which is equivalent to $316 million.
    * That's almost 10 times the 300-lot average for the opening
10 minutes over the past two months, according to Reuters
calculations
    * Silver, platinum and palladium all
gained about 1 percent each.
    * Multiple attacks in Paris on Friday killed more than 130
people, prompting France to launch air strikes in Syria against
Islamic State, which claimed responsibility for the attacks.
 
    * At a G20 summit in Turkey, U.S. President Barack Obama
vowed to step up efforts to eliminate Islamic State and prevent
it carrying out attacks like those in Paris. EU leaders urged
Russia to focus its military efforts on the radical Islamists.  
    * U.S. stock futures were sharply lower and the euro skidded
in early Asian trading on Monday, with stocks expected to take
their cue from poor investor appetite for risk after the Paris
assault and Wall Street's steep losses. 
    * Gold is typically seen as a safe-haven asset during times
of uncertainty. Persistent weakness in stocks could further
boost bullion.
    * Before Monday's gains, gold had fallen for 12 sessions out
of 13 on increasing bets that the Federal Reserve would hike
U.S. rates next month.
    * Rising rates tend to weigh on gold, as they lift the
opportunity cost of holding non-yielding assets while boosting
the dollar. 
    * Data on Friday showed U.S. retail sales rose less than
expected in October, suggesting a slowdown in consumer spending
that could temper expectations of a strong pickup in
fourth-quarter economic growth. Producer prices slipped for a
second straight month.
    * Still, the soft inflation and signs of slowing consumer
spending are unlikely to deter the Federal Reserve from raising
interest rates next month, economists said. 
    * The time to hike U.S. interest rates is "quickly
approaching" and the Fed should not delay for fear of an adverse
market reaction or uncertainty over long-run economic trends, a
Fed policymaker said on Friday. 
    * For the top stories on metals and other news, click
 or 
    
    DATA AHEAD (GMT)
    1000 Euro zone Inflation final Oct 
    1330 U.S. New York Fed manufacturing Nov

    PRICES AT 0032 GMT
 Metal            Last     Change   Pct chg
                                           
 Spot gold         1089.4     6.14     0.57
 Spot silver       14.355    0.115     0.81
 Spot platinum        862      7.5     0.88
 Spot palladium    537.47      1.5     0.28
 Comex gold        1089.1      8.2     0.76
 Comex silver      14.355    0.151     1.06
                                           
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi in Singapore and Josephine
Mason in Beijing)

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