February 21, 2018 / 2:12 AM / 7 months ago

PRECIOUS-Gold falls further as higher yields prop up dollar

    Feb 21 (Reuters) - Gold extended its fall on Wednesday as
the dollar remained strong on rising treasury yields, while
investors awaited the minutes of the U.S. Federal Reserve's last
policy meeting for cues on the pace of interest rate hikes this
year.
   
    FUNDAMENTALS  
    * Spot gold        had slipped by 0.1 percent to $1,328.65
an ounce at 0130 GMT and was down for a fourth straight session.
Prices fell 1.3 percent on Tuesday, in their biggest one-day
percentage decline since Dec. 7, 2017.
    * U.S. gold futures         were down 0.01 percent at
$1,331.1 per ounce.
    * The dollar index       , which measures the greenback
against a basket of currencies, was up 0.03 percent at 89.742.
It rose 0.7 percent in the previous session, its biggest one-day
gain in two weeks.                   
    * The Fed will release the minutes of its Jan. 30-31 policy
meeting on Wednesday. The meeting was held during last month's
drop in equity markets and investors are interested in its
response to the market gyrations as well as the rate outlook.
    * Treasury yields rose overnight with the benchmark 10-year
yield             crawling back to near a four-year peak as
investors made room for this week's $258 billion deluge of new
government debt.      
    * The U.S. Treasury Department on Tuesday sold record
amounts of three-month and six-month bills at the highest
interest rates for these maturities at auctions in more than
nine years, Treasury data showed.             
    * Russia's gold reserves stood at 59.7 million troy ounces
as of the start of February, the central bank said on Tuesday.
            
    * Russia raised gold holdings by 18.911 tonnes to 1,857.73
tonnes in Jan. 2018, according to IMF data.             
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.39 percent to
827.79 tonnes on Tuesday from 824.54 tonnes on Friday.
            
    * Foreign-owned banks, insurance companies and law firms
could be locked out of Tanzania's mining sector as part of tough
new regulations that aim to limit foreign ownership of
mining-related activity.             

    
    DATA AHEAD (In GMT)
    
    0800  France     Markit manufacturing PMI flash          Feb
    0830  Germany    Markit manufacturing PMI flash          Feb
    0900  Euro zone  Markit manufacturing PMI flash          Feb
    1445  U.S.       Markit manufacturing PMI flash          Feb
    1500  U.S.       Existing home sales                     Jan
    1900 Federal Reserve to release minutes from January meeting

 (Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu
Sahu)
  
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