October 7, 2016 / 1:42 AM / 10 months ago

PRECIOUS-Gold heads for worst weekly dip since Nov. 2015

3 Min Read

Oct 7 (Reuters) - Gold snapped an eight-session losing
streak early on Friday, edging up from four-month lows on
bargain hunting, but was headed for its worst weekly dip in
nearly a year on increased expectations of a U.S. rate rise by
year end.
    
    FUNDAMENTALS
    * Spot gold was up 0.2 percent at $1,256.36 an ounce
by 0106 GMT, after falling for eight straight sessions. The
yellow metal touched a four-month low of $1,249.68 in the prior
session. 
    * Bullion was on track for its second weekly loss of nearly
5 percent, its weakest since November 2015. 
    * U.S. gold futures rose 0.5 percent to $1,258.90 an
ounce.
    * The number of Americans filing for unemployment benefits
unexpectedly fell last week to near a 43-year low, an indication
of firmness in the labor market, adding support to a possible
U.S. interest rate hike later this year. 
    * The European Central Bank intends to push on with its
aggressive stimulus policy of negative interest rates and
massive bond buying until it is happy with the outlook for euro
zone inflation. 
    * A disorderly reaction to possible U.S. interest rate hikes
could disrupt capital flows and heighten asset price volatility
in Asia, the International Monetary Fund said on Thursday.
 
    * Gold prices could pull back to as low as $1,200 an ounce
after breaking out of their 2016 uptrend this week, according to
analysts who study past price patterns to determine future
direction. 
    * Goldman Sachs said reaction of gold prices has been larger
than anticipated, leaving risks surrounding its year end
forecast of $1,280 per ounce as moderately skewed to the
downside. 
    * Evolution Mining, Australia's no.2 gold miner,
expects gold prices to remain strong due to geopolitical and
fiscal uncertainty, despite a recent drop on prospects of a U.S.
rate hike in December. 
    * Russia produced 145.95 tonnes of gold in January-July,
down from 148.09 tonnes in the same period last year, the
Finance Ministry said in a statement on Thursday. 
    * For the top stories on metals and other news, click
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 DATA/EVENT AHEAD (GMT)
     0600  Germany        Industrial output            August 
     0645  France         Industrial output            August 
     0645  France         Trade data                   August 
     0830  Britain        Industrial output            August 
     1230  U.S.           Nonfarm payrolls             September
     1230  U.S.           Unemployment rate            September
     1400  U.S.           Wholesale sales              August 

 (Reporting by Swati Verma in Bengaluru; Editing by Richard
Pullin)

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