January 10, 2017 / 1:30 AM / 9 months ago

PRECIOUS-Gold holds below 5-week high on weaker dollar

Jan 10 (Reuters) - Gold on Tuesday hovered below a 5-week
peak hit the session before as the dollar weakened, although the
prospect of further U.S. rate hikes curbed gains.
        
    FUNDAMENTALS
    * Spot gold had edged up 0.1 percent to $1,181.81 an
ounce by 0054 GMT. It touched $1,185.80 on Monday, its highest
since Dec. 5.
    * U.S. gold futures were down 0.3 percent at
$1,181.90 per ounce.
    * The dollar index, which measures the greenback
against a basket of currencies, was down 0.1 percent at 101.85.
    * The Federal Reserve should consider trimming its $4.5
trillion balance sheet to help raise interest rates more quickly
and reduce the negative impact on the economy of a stronger
dollar, Eric Rosengren, president of the Boston Fed, said on
Monday. 
    * Recovery from the economic crisis is "largely done," and
officials should now turn to addressing longer-term issues like
how to boost productivity, Atlanta Federal Reserve bank
president Dennis Lockhart said on Monday. Lockhart said he still
felt the Fed may only need to raise rates twice this year.
 
    * The outlook for U.S. rates may become even clearer when
Chair Janet Yellen appears at a webcast town hall meeting with
educators on Thursday.
    * A focus for the week will be a news conference on
Wednesday at which Trump may give more details about the
policies he will seek to implement after he takes office on Jan.
20.
    * Holdings of the SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, fell 1.06 percent to 805.00
tonnes on Monday. 
    * Auryn Resources Inc said on Monday that Goldcorp
Inc, the world's third-largest gold producer by market
value, would buy a stake in the Canadian exploration company for
C$35 million ($26.49 million), sending its shares up nearly 15
percent. 
    * For the top stories on metals and other news, click
 or 
    
    MARKET NEWS
    Asian stock markets were on the back foot on Tuesday as risk
appetite evaporated overnight after the year's strong start,
with equities retreating, oil markets roiled by a supply surge
and the pound sliding on renewed concerns about a "hard" Brexit.
 
    
    DATA AHEAD (GMT)
            China   Producer Prices           December
            China   Consumer Prices           December
    0745    France  Industrial Output         November
    1100    U.S.    NFIB Small Business Confidence Index
December
    1500    U.S.    JOLTS Job Openings         November

    
    

 (Reporting by Swati Verma in Bengaluru)

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