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PRECIOUS-Gold holds gains on weaker dollar, rising stocks cap gains
October 19, 2016 / 1:05 AM / in a year

PRECIOUS-Gold holds gains on weaker dollar, rising stocks cap gains

Oct 19 (Reuters) - Gold prices held on to gains early
Wednesday, after rising 0.6 percent the session before on a
weaker U.S. dollar, but rising equities capped gains. 
        
    FUNDAMENTALS
    * Spot gold was up slightly at $1,263.31 an ounce by
0052 GMT.
    * U.S. gold futures edged up to $1,264.10 an ounce.
    * U.S. consumer prices recorded their biggest gain in five
months in September as the cost of gasoline and rents surged,
pointing to a steady pickup in inflation that could keep the
Federal Reserve on track to raise interest rates in December.
 
    * Global investors have raised cash holdings back to
post-Brexit highs and cut bond allocations to 10-month lows,
nervous that bond prices are at risk of a destabilising selloff,
a Bank of America Merrill Lynch survey showed on Tuesday.
 
    * Fueled by government spending and a housing frenzy,
China's economic growth likely steadied at 6.7 percent in the
third quarter, but slumping private investment, surging debt and
the risk of a property correction are keeping the government and
global investors on edge. 
    * Indian demand for platinum jewellery will grow by double
digits next year, and Japanese consumption will stay strong, the
head of Platinum Guild International said, with buyers drawn to
prices that are off more than 20 percent from an August peak.
 
    * Deutsche Bank AG has agreed to pay $38 million
to settle U.S. litigation over allegations it illegally
conspired with other banks to fix silver prices at the expense
of investors, according to court papers filed on Monday.
 
    * Delegates to the annual conference by the London Bullion
Market Association (LBMA) expect gold to rebound to well above
$1,300 an ounce over the next 12 months. 
    * India's crackdown on undisclosed foreign assets and income
is curbing demand for gold in the world's second-biggest
consumer, while rising real interest rates and better returns
from other financial markets are also hurting purchases, a
banker said. 
    * The dollar index, which measures the greenback
against a basket of currencies, was down 0.2 percent at 97.663
after touching seven-month highs Monday. 
    * Asian shares inched ahead on Wednesday after Wall Street
got a lift from encouraging corporate earnings and investors
wagered a coming barrage of Chinese data would confirm the
economy had at least stabilised. 
    * For the top stories on metals and other news, click
 or 
    
    DATA/EVENT AHEAD (GMT)
    0200 China GDP Q3 
    0200 China Industrial output September 
    0200 China Retail sales September
    0830 UK Jobless rate (ILO) August
    1230 US Housing starts September

 (Reporting by Nallur Sethuraman and Apeksha Nair in Bengaluru;
Editing by Joseph Radford)

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