February 10, 2017 / 1:25 AM / 6 months ago

PRECIOUS-Gold falls as strong U.S. data boosts rate-hike expectations

3 Min Read

    Feb 11 (Reuters) - Gold fell on Friday to extend losses of
nearly 1 percent from the previous session, with the dollar
firming following robust U.S. economic data that boosted
expectations of a U.S. rate hike.
        
    FUNDAMENTALS
    * Spot gold        was down 0.6 percent at $1,223 per ounce
by 0110 GMT. On Wednesday, the metal touched its highest since
Nov. 11 at $1,244.67.
    * U.S. gold futures         dropped 1 percent to $1,224.40
an ounce.
    * Data showing rising U.S. wholesale inventories and an
unexpectedly low number of Americans filing for unemployment
benefits pushed up the dollar .      and U.S. bond yields
           .             
    * The dollar index        was firm at 100.680. 
    * Chicago Federal Reserve President Charles Evans, a voter
on policy this year, told reporters it is reasonable to expect
the Fed to raise rates three times this year.             
    * However, St. Louis Fed President James Bullard said
interest rates can likely remain low through at least 2017, with
no clear sense yet of whether the Trump administration's
policies will spark higher inflation or growth. 
    * Investors added $7.5 billion in cash to U.S.-based taxable
bond funds during the week through Feb. 8, Lipper data showed on
Thursday, marking the sixth straight week of inflows.
            
    * The expected demise of transparency regulations for
minerals and oil companies listed in the United States will not
cloud the global drive for financial clarity in extractive
industries, company executives told Reuters at an Africa mining
conference.             
    * The World Gold Council has appointed former Paulson & Co
executive John Reade as its chief market strategist, the WGC
said in a statement on Thursday.             
    * Germany's central bank is bringing home gold reserves
stored in places like New York and Paris faster than planned, it
said on Thursday, as confidence in the euro ebbs even in the
heart of the currency bloc after a decade of a sluggish economy.
             
    *  Russian gold miner Nordgold            said on Thursday
it intended to de-list its global depositary receipts (GDRs)
from the London Stock Exchange.             
    * Uncertainty over U.S. President Donald Trump's policies
has driven up gold prices, but the effect may be limited to the
short-term only, the head of Australia's biggest gold miner
Newcrest Mining Ltd          said on Thursday.             
    * Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, were unchanged on Thursday
after rising for six straight sessions.         
    
        
      DATA AHEAD (GMT)
   1330 U.S.  Import, Export Prices      Jan 
   1500 U.S.  U Mich Sentiment Prelim    Feb 
   1530 U.S.  ECRI Weekly Index 
   1900 U.S.  Federal Budget            Jan 

 (Reporting By Nallur Sethuraman in Bengaluru)
  

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