August 8, 2016 / 1:25 AM / 3 years ago

PRECIOUS-Gold holds losses as U.S. jobs data boosts rate-hike expectations

Aug 8 - Gold on Monday hovered near lows from the previous
session, when it fell nearly 2 percent on a firmer dollar after
a stronger-than-expected July jobs report likely increased the
possibility of a U.S. rate hike this year.
    
    FUNDAMENTALS
    * Spot gold had slipped 0.1 percent at $1,333.80 an
ounce by 0055 GMT. Bullion touched a low of $1,331.36 Monday,
its lowest since July 29.
    * U.S. gold edged down 0.3 percent at $1,339.90 an
ounce.
    * The dollar's broad gains put its index against a basket of
six major currencies as high as 96.522 on Friday after
the jobs report, rising 1.6 percent from a five-week low touched
on Tuesday. It last stood at 96.297. 
    * U.S. employment rose more than expected for the second
month in a row in July and wages picked up, bolstering
expectations of faster economic growth, and raising the
probability of a Federal Reserve interest rate increase this
year. 
    * Traders on Friday boosted bets that the U.S. Federal
Reserve could raise interest rates as soon as December after a
government report showed U.S. employers added more jobs than
expected last month. 
    * More top Wall Street banks expect the Federal Reserve to
raise U.S. interest rates in 2016 after a strong July jobs
report suggested a modest economic pick up in the second half
following an anaemic first half, a Reuters poll conducted on
Friday showed. 
    * China's gold reserves stood at 58.79 million fine troy
ounces at the end of July, up from 58.62 million fine troy
ounces at the end of June, the central bank said on Sunday.
 
    * Speculators cut their net long position in COMEX silver
contracts for the first time in two months in the week to Aug.
2, but added longs in gold futures and options for the first
time in four weeks. 
    * Holdings of SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, rose 0.73 percent to 980.34
tonnes on Friday. 
    * For the top stories on metals and other news, click
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    MARKET REPORT
    * Asian shares rose on Monday and the dollar stood tall
after the more than expected July jobs report lifted confidence
in the strength of the U.S. economy. 
    
    
    DATA AHEAD (GMT)
    China Trade data July 
    0600 Germany Industrial output June 
    0830 Euro zone Sentix index August 
    1400 U.S. Employment trends July

 (Reporting By Nallur Sethuraman in Bengaluru; Editing by Joseph
Radford)
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