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PRECIOUS-Gold inches down as dollar gains after strong U.S. data
November 6, 2017 / 1:23 AM / in 17 days

PRECIOUS-Gold inches down as dollar gains after strong U.S. data

    Nov 6 (Reuters) - Gold edged lower early Monday as the
dollar firmed after upbeat U.S. economic data strengthened the
prospect of further interest rate hikes by the Federal Reserve. 
  
            
    FUNDAMENTALS    
    * Spot gold        was down 0.2 percent at $1,267.01 per
ounce at 0107 GMT. On Friday, it fell 0.5 percent and touched a
one-week low of $1,265.16.     
    * U.S. gold futures         for December delivery dipped 0.1
percent to $1,267.70.       
    * Asian shares hovered near decade highs, while the U.S. 
dollar was close to a three-and-half month high against a basket
of currencies        on Monday.                  
    * U.S. President Donald Trump ramped up his tough rhetoric
against North Korea when he arrived in Japan on Sunday, saying
the United States and its allies are prepared to defend freedom
and "no dictator" should underestimate U.S. resolve.
            
    * U.S. job growth accelerated in October after
hurricane-related disruptions in the prior month, but wages grew
at their slowest annual pace in more than 1-1/2 years in a sign
that inflation probably will remain benign.             
    * JPMorgan Chase & Co         on Friday raised its forecast
on the number of U.S. interest rate increases by the Federal
Reserve next year to four from three as the October payrolls
data reinforced the view of a tightening domestic labor market.
            
    * U.S. House of Representatives Speaker Paul Ryan said on
Sunday that Republican lawmakers are weighing a "host of ideas"
as the House tax-writing committee begins revising a tax bill
this week, though he expects the broad outlines to remain the
same.             
    * Demand for physical gold was lacklustre in top consumers
India and China last week. The lure of the metal remained stable
in Singapore, but India's peak wedding season is expected to
usher in renewed interest for bullion in coming weeks.
            
    * Embattled London and Johannesburg-listed platinum producer
Lonmin        ,          will unveil new health and road
projects in South Africa on Monday in a ceremony that will be
overshadowed by its latest share price collapse.              
    * Holdings in SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.03 percent to 845.75
tonnes on Friday.                  
    * Hedge funds and money managers reduced their net long
position in COMEX gold contracts for the seventh straight week, 
  in the week to Oct. 31, U.S. Commodity Futures Trading
Commission (CFTC) data showed on Friday.             
          
    DATA/EVENT AHEAD (GMT)
    0900  Euro Zone  Markit Serv Final PMI     Oct

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by
Richard Pullin)
  

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