December 20, 2016 / 1:10 AM / 7 months ago

PRECIOUS-Gold dips for first time in three sessions on Fed's Yellen remarks

2 Min Read

Dec 20 (Reuters) - Gold prices edged lower on Tuesday, after
closing up in the two previous sessions, as optimistic remarks
on the U.S. labor market by Federal Reserve Chair Janet Yellen
strengthened the possibility of further rate hikes next year.
    
    FUNDAMENTALS
    * Spot gold shed 0.2 percent to $1,136.96 an ounce by
0100 GMT. 
    * U.S. gold futures fell 0.3 percent to $1,139.10
per ounce.
    * Federal Reserve Chair Janet Yellen said on Monday the U.S.
labor market has improved to its strongest in nearly a decade,
suggesting wage growth is picking up and underscoring
expectations the central bank will continue to raise interest
rates next year. 
    * The Bank of Japan is likely to keep monetary policy steady
and give a more upbeat view of the economy on Tuesday,
reinforcing market expectations that its future policy direction
could be an increase - not a cut - in interest rates.
 
    * China's economic growth is expected to cool in 2017 as its
top leaders flag tighter monetary policy and further curbs to
clamp down on asset price bubbles, especially in the property
market, even as a sharp drop in the yuan has fed fears of market
turmoil. 
    * Holdings of the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 1.06 percent to 828.10
tonnes on Monday. 
    * Macquarie cuts gold and silver price forecasts for 2017.
Macquarie sees average 2017 gold price forecast at $1,216 an
ounce (down 11.9 percent from previous forecast), sees 2018 gold
outlook at $1,375 an ounce. 
    * Singapore Exchange Ltd announced that its
Singapore kilobar gold contract has become the world's first
Shariah-compliant gold futures 
    * For the top stories on metals and other news, click
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  DATA AHEAD (GMT)  
    0700  Germany           Producer prices           November
    0900  Euro zone         Current account           October 

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

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