* Data bolsters view Fed stimulus should fade
* Dollar hits one-week high against euro, yen
* India hikes gold import duty for 3rd time in 2013
* Coming up: U.S. producer price index, funds' SEC filings
(Adds market activities and Fed's Lockhart comments)
By Frank Tang and Zhe Sun
NEW YORK/LONDON, Aug 13 Gold fell 1 percent on
Tuesday, snapping a four-day winning streak, weighed down by
better U.S. consumer spending data and after top market India
hiked its import duty on gold to a record 10 percent.
Bullion came under pressure after a report by the Commerce
Department showed U.S. consumer spending rose in July at its
fastest pace in seven months, an encouraging sign that could
strengthen the case for the Federal Reserve winding down its
economic stimulus program.
The metal extended loses as the dollar rose to a one-week
high against both the euro and the yen on the U.S. retail data.
"The story right now is the stronger dollar, and the huge
increase of import duties by the Reserve Bank of India (RBI) is
likely to weigh on physical demand," said Howard Wen, metal
analyst at HSBC.
India raised import taxes on gold and silver on Tuesday as
policymakers scrambled to narrow a gaping current account
deficit. It marked the third such increase in eight months.
Spot gold fell 1 percent to $1,322.40 by 2:14 p.m.
EDT (1814 GMT).
U.S. Comex gold futures for December delivery settled
down $13.70 at $1,320.50 an ounce, with trading volume about 20
percent below its 30-day average, preliminary Reuters data
The metal largely ignored comments by Atlanta Fed President
Dennis Lockhart, who said recent data does not present a clear
picture of the economy, even as he did not rule out some kind of
decrease next month in the $85 billion monthly pace of bond buys
currently under way.
Traders are closely focused on U.S. economic data for signs
of economic momentum as they anticipate that the U.S. central
bank will start reducing its stimulus in September if the
economy is gaining traction.
Gold has fallen about 20 percent this year as any Fed
stimulus tapering would likely lead to a higher interest-rate
environment that diminished gold's attractiveness.
Wednesday's U.S. regulatory filings from hedge funds and
institutional investors are expected to show how their holdings
had changed during the second quarter, in which gold had posted
a record two-day $225 sell-off in mid April.
Silver sharply erased its early gains, largely
tracked gold's move. It last traded 0.3 percent higher at $21.42
an ounce, having earlier risen to a two-month high of $21.76 an
Among platinum group metals, platinum edged up 0.2
percent to $1,495.24 an ounce, while palladium gained 25
cents to $736.25 an ounce.
2:14 PM EDT LAST/ NET PCT LOW HIGH CURRENT
SETTLE CHNG CHNG VOL
US Gold DEC 1320.50 -13.70 -1.0 1317.80 1341.00 139,200
US Silver SEP 21.343 0.004 0.0 21.120 21.750 58,743
US Plat OCT 1499.70 1.00 0.1 1493.10 1514.70 8,181
US Pall SEP 738.90 1.30 0.2 735.20 742.75 3,488
Gold 1322.40 -13.39 -1.0 1319.43 1341.11
Silver 21.420 0.070 0.3 21.170 21.760
Platinum 1495.24 2.24 0.2 1494.00 1511.75
Palladium 736.25 0.25 0.0 738.00 740.00
TOTAL MARKET VOLUME 30-D ATM VOLATILITY
CURRENT 30D AVG 250D AVG CURRENT CHG
US Gold 149,245 193,703 188,374 22.78 -4.19
US Silver 70,614 45,810 54,176 29.42 1.40
US Platinum 8,389 9,249 12,496 20.53 0.00
US Palladium 4,141 3,637 5,310
(Additional reporting by Clara Denina in London, A.
Ananthalakshmi in Singapore; Editing by Andrew Hay and Grant