February 15, 2017 / 1:09 AM / in 5 months

PRECIOUS-Gold edges lower after Yellen rate hike hint

3 Min Read

    Feb 15 (Reuters) - Gold prices edged lower on Wednesday on
an uptick in the dollar after U.S. Federal Reserve Chair Janet
Yellen hinted at a hike in interest rates in an upcoming meeting
of the central bank.     
        
    FUNDAMENTALS
    * Spot gold        fell 0.24 percent, to $1,225.20 per ounce
at 0046 GMT, while U.S. gold futures         were up 0.11
percent, to $1,226.7.
    * The Federal Reserve will likely need to raise interest
rates at an upcoming meeting, Yellen said on Tuesday, although
she flagged considerable uncertainty over economic policy under
the U.S. President Donald Trump's administration.             
    * The dollar index        was up 0.06 percent at 101.31,
near the 3-1/2-week high of 101.38 hit on Tuesday following
Yellen's remarks.             
    * Yellen, in response to a warning from a U.S. congressman
to halt global regulatory talks in the early stages of Trump's
presidency, said in a letter the Fed has the authority and
responsibility to consult with its foreign counterparts and does
so to benefit the United States.             
    * Holdings of the largest gold-backed exchange-traded-fund
(ETF), New York's SPDR Gold Trust GLD, rose 0.50 percent on
Monday from Friday.          
    * The world's largest physically-backed gold fund said on
Wednesday it has been certified as sharia compliant, the latest
effort aimed at spurring demand for bullion from investors
across majority-Muslim countries.             
    * Soros Fund Management LLC got out of gold in the fourth
quarter of 2016 while Paulson & Co reduced its stake in SPDR
Gold Trust GLD.P, as bullion prices saw their weakest quarterly
performance in 3-1/2 years, regulatory filings showed on
Tuesday.             
    * U.S. producer prices recorded their largest gain in more
than four years in January amid increases in the cost of energy
products, but a strong dollar continued to keep underlying
inflation at the factory gate tame.             
    * Optimism about the strength of the euro zone economy took
a hit on Tuesday as data showed lower-than-expected growth,
possibly caused by weaker global trade as protectionist calls
grow louder.             


    
    DATA AHEAD  GMT
    1000  Euro zone      Eurostat trade      Dec 
    1330  U.S.           Consumer prices     Jan
    1330  U.S.   New York Fed manufacturing  Feb
    1330  U.S.   Retail sales                Jan
    1415  U.S.   Industrial production       Jan
    1500  U.S.   Business inventories        Dec
    1500  U.S.   NAHB housing market index   Feb
    1500  Federal Reserve Chair Janet Yellen delivers semiannual
monetary testimony before the House Financial Services Committee
    

 (Reporting by Arpan Varghese in Bengaluru; Editing by Michael
Perry)
  

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