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PRECIOUS-Gold drifts from one-month peak on Fed rate hike concerns
May 31, 2017 / 1:07 AM / 4 months ago

PRECIOUS-Gold drifts from one-month peak on Fed rate hike concerns

    May 31 (Reuters) - Gold edged lower on Wednesday, moving
away from a one-month peak hit in the previous session as U.S.
economic data boosted the case for an interest rate hike by the
Federal Reserve next month. 
    
    FUNDAMENTALS    
    * Spot gold        was down 0.2 percent to $1,260.60 per
ounce at 0101 GMT. It touched a one-month high of $1,270.47
before pulling back 0.3 percent on Tuesday. 
    * U.S. gold futures         dipped 0.2 percent to $1,260.
    * U.S. consumer spending recorded its biggest increase in
four months in April and monthly inflation rebounded, pointing
to firming domestic demand that could allow the Federal Reserve
to raise interest rates next month.             
    * A U.S. rate hike is probably coming soon though the
Federal Reserve may want to delay if inflation remains soft,
influential Fed governor Lael Brainard said on Tuesday, adding
she also backs shrinking the bond portfolio "before too long."
               
    * Two of the Federal Reserve's 12 regional banks supported
raising the discount rate ahead of the central bank's May
meeting, according to minutes of the discount rate discussions
released on Tuesday.                   
    * British Prime Minister Theresa May's Conservative Party
risks falling short of winning an overall majority of seats in
parliament in a national election on June 8, The Times newspaper
said on Tuesday, quoting research by polling firm YouGov.
            
    * European Central Bank policymakers are set to take a more
benign view of the economy when they meet on June 8 and will
even discuss dropping some of their pledges to ramp up stimulus
if needed, four sources with direct knowledge of the discussions
told Reuters.             
    * German consumer inflation eased more than expected in May
to fall well below the European Central Bank's 2 percent target,
data showed on Tuesday, taking some pressure off the ECB to wind
down its monetary stimulus in the near term.             
    * Greece on Tuesday denied a German newspaper report it
could refuse receipt of bailout loans needed to make a July debt
repayment if its lenders fail to offer clear debt relief terms,
despite it having passed more reforms.             
                
    DATA AHEAD (GMT) 
    0100  China Official manufacturing PMI             May    
    0100  China Official non-manufacturing PMI         May 
    0600  Germany Retail sales                         Apr 
    0645  France Producer prices                       Apr 
    0800  Germany Unemployment rate                    May 
    0900  Euro zone Inflation                          May 
    0900  Euro zone Unemployment rate                  Apr 
    1400  U.S.  Pending homes sales                    Apr 

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by
Richard Pullin)
  

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