PRECIOUS-Gold sticks below $1,200, U.S. rate hike outlook in focus

Published 14-04-2015, 06:11 am
© Reuters. PRECIOUS-Gold sticks below $1,200, U.S. rate hike outlook in focus
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SINGAPORE, April 14 (Reuters) - Gold hovered below $1,200 an ounce on Tuesday after slipping nearly 1 percent the session before, pressured by the possibility that U.S. interest rates could rise in the near term.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,198.20 an ounce at 0023 GMT.

* U.S. gold for June delivery GCcv1 was steady at $1,198.30 an ounce.

* Recent comments from Federal Reserve officials suggest the U.S. central bank has not ruled out the chance of raising interest rates by June even as some analysts doubt that possibility amid signs of renewed economic weakness. ID:nL2N0X70Z7 ID:nL2N0XA01K

* A U.S. rate increase which would be the first in nearly a decade dims the appeal of assets such as gold which does not pay interest.

* Still, spot gold has not fallen too far off a seven-week top above $1,220 reached last week, indicating bulls were ready to push prices higher if more signs emerge that a U.S. rate hike would be delayed.

* Canadian gold miners Alamos Gold Inc AGI.TO and AuRico Gold Inc AUQ.TO unveiled a $1.5 billion merger plan, setting the stage for possible competing offers as miners scout for assets amid slowing growth and weaker gold prices. ID:nL4N0XA41V

* Greece denied a report by the Financial Times that it was preparing for a debt default if it did not reach a deal with its creditors by the end of the month and said the negotiations were proceeding "swiftly" towards a solution. ID:nL5N0XA3SR

* For the top stories on metals and other news, click TOP/MTL or GOL/

MARKET NEWS

* The yen hovered just below a two-year peak against the euro on Tuesday and was broadly firmer versus other major currencies as investors shed bearish positions overnight. USD/

* Equities in major markets slipped on Monday, weighed down by Wall Street on trepidation over first-quarter earnings. MKTS/GLOB

DATA AHEAD (GMT)

0600 Germany

Wholesale price index

Mar

0900 Euro zone

Industrial production

Feb

1230 U.S.

Retail sales

Mar

1300 U.S.

NFIB business optimism

Mar

1400 U.S.

Business inventories

Feb

Precious metals prices at 0023 GMT Metal

Last

Change Pct chg YTD pct chg

Spot Gold

1198.20 -0.07 -0.01

1.24 Spot Silver

16.25 -0.06 -0.37

3.77 Spot Platinum

1149.90

0.65 +0.06

-4.17 Spot Palladium

766.72 -0.42 -0.05

-3.28 COMEX GOLD JUN5 1198.30 -1.00 -0.08

1.20

COMEX SILVER MAY5 16.26 -0.03 -0.19

4.24

Euro/Dollar

1.0577 Dollar/Yen

120.00

COMEX gold and silver contracts show the most active months

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