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PRECIOUS-Gold sits near 10-1/2 month low as dollar rallies on Fed
December 16, 2016 / 1:26 AM / 7 months ago

PRECIOUS-Gold sits near 10-1/2 month low as dollar rallies on Fed

3 Min Read

Dec 16 (Reuters) - Gold prices held near their weakest level
in 10-1/2 months on Friday as the U.S. dollar surged to
multi-year peaks after the Federal Reserve raised interest rates
and projected further rate hikes in 2017.
    
    FUNDAMENTALS
    * Spot gold was steady at $1,128.70 an ounce by 0101
GMT, after touching its weakest level since Feb. 2 at $1,122.35
in the previous session. Gold fell nearly 1.4 percent on
Thursday, its biggest percentage fall in three weeks.
    * The metal was down more than 2.5 percent for the week, on
track for its sixth consecutive weekly decline.
    * "U.S. gold futures were up 0.1 percent at
$1,130.90 an ounce, after falling nearly 3 percent in the prior
session."
    * The dollar stood tall on Friday, on track for hefty gains
for the week, on expectations of more U.S. Federal Reserve
interest rate hikes. 
    * The dollar index, which measures the greenback
against a basket of currencies, was up 0.1 percent at 103.140.  
    * Rising rents lifted underlying U.S. inflation in November,
pointing to a steady build-up of price pressures in the economy
that could support more interest rate increases from the Federal
Reserve next year. 
    * The prospect of further monetary policy tightening in 2017
was also bolstered by other data on Thursday showing a drop in
the number of Americans filing for unemployment aid last week.
    * Holdings of the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 0.84 percent to 842.33
tonnes on Thursday. 
    * Russia's Petropavlovsk downgraded its 2016 gold
output forecast due to mining disruptions at Pioneer, the
company's largest mine. 
    * Silver miner Hochschild Mining Plc said
production at its Pallancata silver mine in Peru had been
temporarily suspended, as members of a local community blocked a
road and demanded renegotiation of agreements for land
easements. 
    * The Royal Mint is to launch its first range of platinum
bullion coins and bars next year, it said in a statement on
Thursday, in partnership with the World Platinum Investment
Council. 
    * For the top stories on metals and other news, click
 or 
       
  DATA AHEAD (GMT)
     
    0745  France           Business climate          December
    1000  Euro zone        Eurostat trade            October
    1330  U.S.             Building permits          November 
    1330  U.S.             Housing starts            November

 (Reporting by Swati Verma in Bengaluru; Editing by Richard
Pullin)

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