November 3, 2015 / 12:27 AM / 2 years ago

PRECIOUS-Gold stuck near 4-week low on U.S. rate hike view

SINGAPORE, Nov 3 (Reuters) - Gold languished near a
four-week low on Tuesday as investors bet the Federal Reserve
would hike U.S. rates this year, triggering fund outflows.
    
    FUNDAMENTALS
    * Spot gold was little changed at $1,133.65 an ounce
by 0016 GMT, not far from a four-week low of $1,132.35 reached
in the previous session. The metal slid for a fourth consecutive
session on Monday.
    * Gold is seeing a sell-off as investors position themselves
for a possible U.S. rate hike this year. Last week, the Fed
firmly put a December rate rise in play, hurting earlier
expectations that the increase could be pushed to next year on
global growth concerns. 
    * As a non-interest-paying asset, gold demand could take a
hit from higher rates, while the dollar would also be boosted.
    * U.S. economic data on Monday was supportive of a rate hike
this year. Manufacturing activity in October hit a 2-1/2-year
low, but a rise in new orders offered hope the United States
might have seen its worst. 
    * Other data showed construction spending rose in September
to the highest in 7-1/2 years, indicating the economy remained
on firmer ground despite signs of consumer spending cooling. 
    * The rate hike expectations have kept interest in gold
muted as seen in investor flows. 
    * Holdings in SPDR Gold Trust, the top gold-backed
exchange-traded fund, fell 0.43 percent to 689.28 tonnes on
Monday, the lowest in three weeks. 
    * Speculators have trimmed bullish bets on gold from an
8-1/2-month high. 
    * Technical selling and soft physical demand could also hurt
gold prices.   
    * CME Group Inc's online trading platform CME Direct
reopened four hours after it was shut on Monday due to a
technical issue, the latest glitch to hit the world's largest
futures market operator and roil commodity trading. 
    * For the top stories on metals and other news, click
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    MARKET NEWS
    * U.S. stocks climbed on Monday after mixed U.S. economic
data and slightly stronger-than-expected German factory activity
helped European stocks, even as weak Chinese data pushed down
Asian markets and crude oil prices. 
    
    DATA AHEAD (GMT)
    1445 U.S. ISM-New York index Oct 
    1500 U.S. Factory orders Sep

    PRICES AT 0016 GMT
 Metal            Last     Change   Pct chg
                                           
 Spot gold        1133.65      0.3     0.03
 Spot silver        15.39        0        0
 Spot platinum        971     -1.5    -0.15
 Spot palladium       649      1.5     0.23
 Comex gold        1133.6     -2.3     -0.2
 Comex silver        15.4   -0.008    -0.05
                                           
 COMEX gold and silver contracts show the
 most active months
 
    

 (Reporting by A. Ananthalakshmi; Editing by Joseph Radford)

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