June 5, 2014 / 12:55 AM / 3 years ago

PRECIOUS-Gold holds near 4-month low as ECB decision awaited

SINGAPORE, June 5 (Reuters) - Gold was little changed near a
four-month low on Thursday, but faced a risk of more losses if
the European Central Bank meets expectations to cut rates, a
move that could strengthen the dollar and hurt bullion.
    
    FUNDAMENTALS
    * Spot gold had edged up slightly to $1,244.01 an
ounce by 0039 GMT. The metal is close to its 4-month low of 
$1,240.61 hit earlier in the week.
    * The ECB is widely expected to cut all of its interest
rates on Thursday, which would push the deposit rate into
negative territory for the first time. It is also seen offering
longer-term loans linked to further lending, but stop short of
following the Bank of Japan in launching large-scale asset
purchases. 
    * A weaker euro and a stronger dollar would make the
dollar-denominated gold more expensive of holders of other
currency.
    * Markets were also eyeing Friday's U.S. nonfarm payrolls to
gauge the strength of the economy. A weak report could burnish
gold's appeal as a safe-haven.
    * ETF Securities, one of the biggest providers of
exchange-traded funds, has submitted a proposal to develop a new
global silver price benchmark when the 117-year-old London
silver fix is disbanded in August. 
    * In news from other precious metals, South Africa's new
mining minister Ngoako Ramatlhodi said he hoped to resolve the
strike in the platinum sector this week, and union AMCU was also
optimistic the five-month stoppage that has crippled mine output
could be nearing an end. 
    * For the top stories on metals and other news, click
, or 
    
    MARKET NEWS
    * The euro languished at four-month lows early on Thursday
with investors firmly sidelined as they waited to see what
measures the European Central Bank would implement to tackle the
threat of deflation. 
    
    DATA/EVENTS (GMT)
    0145 China HSBC services PMI May 
    0600 Germany Industrial orders April 
    0900 Euro zone Retail sales April 
    1145 European Central Bank announces policy meeting outcome 
    1230 U.S. Weekly jobless claims

    PRICES AT 0039 GMT
 Metal            Last     Change  Pct chg
                                          
 Spot gold        1244.01    1.21      0.1
 Spot silver        18.76       0        0
 Spot platinum     1434.4     3.2     0.22
 Spot palladium    833.25   -0.15    -0.02
 Comex gold        1244.4     0.1     0.01
 Comex silver       18.79  -0.002    -0.01
 Euro              1.3603                 
 DXY               80.628                 
                                          
 COMEX gold and silver contracts show the
 most active months
 
 (Reporting by A. Ananthalakshmi; Editing by Ed Davies)

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