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PRECIOUS-Gold hovers near 2-week low on dollar, US rate outlook
May 28, 2015 / 12:56 AM / 3 years ago

PRECIOUS-Gold hovers near 2-week low on dollar, US rate outlook

SINGAPORE, May 28 (Reuters) - Gold struggled to recover from
a two-week low on Thursday as a robust dollar and the prospects
of higher U.S. interest rates dented demand for the metal.
    
    FUNDAMENTALS
    * Spot gold was little changed at $1,186.95 an ounce
by 0048 GMT, not far from a two-week low of $1,183.76 reached in
the previous session. 
    * The greenback was trading near a one-month high against a
basket of major currencies, and hovered at eight-year highs
against the yen early on Thursday. 
    * The dollar has been well-bid since Federal Reserve Chair
Janet Yellen said last week the U.S. central bank is poised to
raise interest rates later this year.
    * Other data this week showing better-than-expected U.S.
data on core business spending, new home sales and consumer
confidence also supported Yellen's views and the dollar.
    * Robust data and a higher greenback diminish demand for
gold as a safe-haven. Higher rates would also dent gold's appeal
as it is a non-interest-paying asset.
    * Traders were also eyeing the Greek debt crisis, worsening
of which could trigger safe-haven demand for gold.
    * Greece and its international creditors have converged on
key points on a cash-for-reforms deal but talks still have some
room to cover before an agreement is clinched, the country's
economy minister said on Thursday.
    * Greece and its EU/IMF lenders have been locked in tortuous
negotiations on a reforms agreement for four months without a
breakthrough in sight. Without a deal, Athens risks default or
bankruptcy in weeks.
    * For the top stories on metals and other news, click
 or 
    
    MARKET NEWS
    * Equities markets rose on Wednesday, led by gains in
European stocks, and the euro edged up on signs, later
dismissed, that Greece and its creditors were drafting an
agreement that would provide Athens much-needed debt relief.
    
    DATA/EVENTS (GMT)
    0600 Germany Import prices Apr 
    0900 Euro zone Business climate May 
    1230 U.S. Weekly jobless claims 
    1400 U.S. Pending home sales Apr
    
    PRICES AT 0048 GMT
 Metal            Last     Change   Pct chg
                                           
 Spot gold        1186.95    -0.45    -0.04
 Spot silver        16.64    -0.03    -0.18
 Spot platinum     1115.5    -1.48    -0.13
 Spot palladium     782.5    -1.48    -0.19
 Comex gold        1186.7      1.1     0.09
 Comex silver       16.67    0.023     0.14
 Euro              1.0913                  
 DXY               97.199                  
                                           
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Michael Perry)

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