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PRECIOUS-Gold falls to over 10-mnth low as Fed signals more hikes in 2017
December 15, 2016 / 1:24 AM / a year ago

PRECIOUS-Gold falls to over 10-mnth low as Fed signals more hikes in 2017

Dec 15 (Reuters) - Gold prices fell on Thursday to a new low
in more than 10 months as the dollar surged after the U.S.
central bank raised interest rates for the first time in a year
and signalled further rate hikes for 2017.
    
    FUNDAMENTALS
    * Spot gold edged 0.4 percent lower to $1,139.54 an
ounce by 0108 GMT. The bullion touched a new low of 1,134.71 an
ounce, its lowest since Feb. 3. The yellow metal fell over one
percent in the prior session.
    * U.S. gold futures fell nearly 2 percent to 
$1,141.80 per ounce. The prices fell to $1,136.4 an ounce
earlier in the session to their lowest since Feb. 1 and
registered their biggest percentage fall in one month.
    * The dollar index, which measures the greenback
against a basket of currencies, was up 0.7 percent at 102.490.
The dollar hovered near a 14-year peak against a basket of major
currencies on Thursday. 
    * The U.S. Federal Reserve raised interest rates on
Wednesday and signalled a faster pace of increases in 2017 as
central bankers adapted to the incoming Trump administration's
promises of tax cuts, spending and deregulation. 
    * U.S. retail sales barely rose in November and industrial
production recorded its biggest drop in eight months, suggesting
some loss of momentum in economic growth in the fourth quarter.
 
    * Holdings of the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 0.80 percent to 849.44
tonnes on Wednesday. 
    * Human rights groups on Wednesday welcomed a decision by
Thailand to close the country's only active gold mine by the end
of the year as the mine's operator said it had laid off the
employees. 
    * The amount of gold dug up by people working informally in
Mali could soon rival official production thanks to demand from
domestic refineries, officials in the West African nation say.
 
    * Turquoise Hill Resources Ltd said on Wednesday it
had resumed concentrate shipments from its giant copper-gold Oyu
Tolgoi mine in Mongolia following talks with Chinese and
Mongolian authorities. 
    * For the top stories on metals and other news, click
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  DATA AHEAD (GMT)
    0800  France       Markit manufacturing flash PMI  December
    0830  Germany      Markit manufacturing flash PMI  December
    0900  Euro zone    Markit manufacturing flash PMI  December
    0930  Britain      Retail sales                    November 
    1200  Bank of England interest rate decision 
    1330  U.S.         Consumer prices                 November 
    1330  U.S.         Current account                  Q3
    1330  U.S.         New York Fed manufacturing      December
    1330  U.S.         Weekly jobless claims
    1330  U.S.         Philly Fed business index       December
    1500  U.S.         NAHB housing market index       December

 (Reporting by Swati Verma in Bengaluru)

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