September 25, 2014 / 12:57 AM / 5 years ago

PRECIOUS-Gold extends losses as stronger equities, dollar weigh

SINGAPORE, Sept 25 (Reuters) - Gold extended losses on
Thursday on stronger equities and robust U.S. economic data that
curbed its safe-haven appeal, and the metal looked likely to
fall back towards January lows as the dollar index rallied to
four-year highs. 
        
    FUNDAMENTALS
    * Spot gold dipped 0.3 percent to $1,213.60 an ounce
by 0043 GMT, after losing 0.5 percent in the previous session.
Gold is not too far from an 8-1/2-month low of $1,208.36 hit
earlier in the week.
    * The dollar was boosted after data on Wednesday showed
sales of new U.S. single-family homes surged in August to their
highest level in more than six years, a sign the housing
recovery remains on course. 
    * A slump in the euro also helped the dollar. European
Central Bank President Mario Draghi renewed a pledge to keep
monetary policy loose for an extended period. 
    * Gold, often seen as an alternative investment to riskier
assets, came under additional pressure as world stock indexes
also rose. 
    * Investors will be eyeing more U.S. data due later today to
gauge the strength of the economy and its impact on the Federal
Reserve's monetary policy.
    * Markets fear strong data could prompt the Fed to boost
interest rates soon, a move that would affect non-interest
yielding assets such as bullion.    
    * Gold transferred between accounts held by bullion clearers
climbed slightly to an average volume of 18 million ounces a day
in August, up 0.4 percent from July's figure, the London Bullion
Market Association said.    
    * The U.S. Mint has sold nearly 50,000 ounces of American
Eagle gold coins so far in September, almost double its total in
August, as a sharp pullback in gold prices and geopolitical
tensions boosted interest for physical products from retail
investors.     
    * For the top stories on metals and other news, click
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    MARKET NEWS
    * Asian stocks rose early on Thursday, cheered by a sizeable
overnight rebound on Wall Street, while the dollar resumed its
advance after upbeat economic data undercut safe-haven bids and
pushed yields higher. 
    
    DATA/EVENTS (GMT)
    0800 Euro zone M3 money supply Aug 
    0900 Italy Retail sales July 
    1230 U.S. Durable goods orders Aug 
    1230 U.S. Weekly jobless claims 
    1345 U.S. Markit Services PMI Flash Sep

    PRICES AT 0043 GMT
 Metal             Last      Change   Pct chg
                                             
 Spot gold           1213.6    -3.09    -0.25
 Spot silver          17.63    -0.02    -0.11
 Spot platinum      1308.99    -4.91    -0.37
 Spot palladium      810.25    -4.15    -0.51
 Comex gold          1214.1     -5.4    -0.44
 Comex silver        17.625   -0.077    -0.43
 Euro                1.2778                  
 DXY                 85.104                  
                                             
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Richard Pullin)
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