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PRECIOUS-Gold eases as strong equities, data dent safe-haven appeal
July 7, 2014 / 12:30 AM / 3 years ago

PRECIOUS-Gold eases as strong equities, data dent safe-haven appeal

SINGAPORE, July 7 (Reuters) - Gold edged lower on Monday as
its safe-haven appeal was dulled by global equities that were
trading close to record highs on strong economic data, while
speculation over an earlier-than-expected hike in U.S. interest
rates also weighed on bullion. 
    
    FUNDAMENTALS
    * Spot gold slipped 0.2 percent to $1,317.94 an ounce
by 0021 GMT, after posting its fifth straight weekly gain on
Friday. 
    * Gold has been under pressure since data on Thursday showed
U.S. employment growth jumped in June and the jobless rate
closed in on a six-year low, decisive evidence of brisk economic
growth. 
    * A bullish U.S. jobs report prompted several economists to
toy with the idea of bringing forward their forecasts for a
Federal Reserve interest rate hike, although most held firm,
preferring to wait for more data. 
    * Speculators raised net long positions in gold by 22,573
contracts to 136,929 in the week to July 1, data from the
Commodity Futures Trading Commission showed on Friday. Silver
long positions rose by 11,940 contracts to 36,697. 
    * Gold producers will return to net hedging for the first
time since 2011 this year, GFMS analysts at Thomson Reuters
said. 
    * Among other precious metals, palladium continued to
trade near a 13-year high on strong demand from the auto
industry where the metal is used in catalytic converters in
vehicle engines.
    * Palladium was boosted by last week's data that U.S. auto
sales hit an eight-year high in June, and continued supply
worries from major producer South Africa.
    * For the top stories on metals and other news, click
, or 
    
    MARKET NEWS
    * World stocks were enjoying the view at an all-time high on
Friday, lifted by a week of strong U.S. economic data and
promises from the European Central Bank that cheap money will be
sloshing around for years. 
    
    DATA/EVENTS (GMT)
    0600 Germany Industrial output May 
    0830 Euro zone Sentix index July 
    1400 U.S. Employment trends June

    PRICES AT 0021 GMT   
    
 Metal            Last      Change   Pct chg
                                            
 Spot gold         1317.94    -2.11    -0.16
 Spot silver         21.05    -0.08    -0.38
 Spot platinum     1497.75     8.75     0.59
 Spot palladium     861.97     2.77     0.32
 Comex gold         1319.3     -1.3     -0.1
 Comex silver        21.14    0.003     0.01
 Euro               1.3585                  
 DXY                80.315                  
                                            
 COMEX gold and silver contracts show the
 most active months
 
    

 (Reporting by A. Ananthalakshmi; Editing by Ed Davies)

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