June 8, 2015 / 12:26 AM / 2 years ago

PRECIOUS-Gold near 11-week low on US jobs report, rate outlook

SINGAPORE, June 8 (Reuters) - Gold was trading near a
11-week low on Monday, retaining losses from a three-day losing
streak, as a strong U.S. jobs report boosted expectations for a
U.S. interest rate hike in September. 
    
    FUNDAMENTALS
    * Spot gold was little changed at $1,171.76 an ounce
by 0014 GMT. 
    * The metal had fallen to $1,162.35 on Friday, its lowest
since March 19, after data showed U.S. job growth accelerated
sharply in May and wages picked up. Nonfarm payrolls increased
280,000 last month, the largest gain since December.
 
    * The report, indicating signs of strong momentum in the
U.S. economy, bolstered expectations the Federal Reserve will
begin to raise rates in September. 
    * The dollar rallied to a 13-year peak against the yen and
rose sharply against the euro on Friday after the robust jobs
data. 
    * Higher U.S. rates could diminish demand for
non-interest-paying bullion, while a stronger dollar makes gold
more expensive for holders of other currencies and reduces the
metal's safe-haven appeal.       
    * SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.17 percent to
708.70 tonnes on Friday - their lowest since mid January.
    * Hedge funds and money managers cut net long positions in
gold and silver during the week ended June 2, U.S. Commodity
Futures Trading Commission data showed on Friday.
 
    * South Africa should review a preferential tax enjoyed by
gold producers, a commission set up to look into taxes in
Africa's most advanced economy said in a report. 
    * South Africa's Association of Mineworkers and Construction
Union will launch a wildcat strike if its rival union and gold
mining companies impose a wage deal on its members, its
president said on Sunday. 
    * For the top stories on metals and other news, click
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    MARKET NEWS
    * Benchmark 10-year U.S. Treasury yields posted their
steepest weekly jump in nearly two years on Friday after the
jobs report.    
    
    DATA/EVENTS (GMT)
    China Trade data May 
    0600 Germany Industrial output Apr 
    0600 Germany Trade data Apr 
    0830 Euro zone Sentix index Jun 
    1400 U.S. Employment trends Jun
    
    PRICES AT 0014 GMT
 Metal            Last     Change  Pct chg
                                          
 Spot gold        1171.76    0.51     0.04
 Spot silver        16.07    0.01     0.06
 Spot platinum       1092     0.5     0.05
 Spot palladium    750.47    1.52      0.2
 Comex gold        1171.5     3.4     0.29
 Comex silver       16.04   0.056     0.35
 Euro              1.1104                 
 DXY                 96.4                 
                                          
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Ed Davies)

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