PRECIOUS-Gold prices edge down as strong U.S. data boosts rate rise view

By Reuters / October 12, 2018 / / Article Link

BENGALURU, Oct 11 (Reuters) - Gold prices inched down on Thursday as robust U.S. data potentially bolstered the chances of multiple U.S. interest rate hikes over the next year.

The declines came even as Wall Street suffered its worst drubbing in eight months.


* Spot gold XAU= was down 0.2 percent at $1,192.41 an ounce at 0105 GMT.

* U.S. gold futures GCv1 were up 0.2 percent at $1,195.70 an ounce.

* U.S. producer prices increased 0.2 percent in September, in line with expectations, while a revision to wholesale inventory estimates for August showed the biggest jump in nearly five years, beating forecasts. Asian share markets sank on Thursday after the falls on Wall Street, a conflagration of wealth that could threaten business confidence and investment across the globe. MKTS/GLOB

* U.S. President Donald Trump said that Wednesday's stock market sell-off was in fact a long-awaited "correction," and that the Federal Reserve, which has been raising U.S. interest rates, had gone "crazy". The dollar index .DXY , which measures the greenback against a basket of six major currencies, was down 0.1 percent.

* U.S. Treasury yields fell late on Wednesday in a flight to quality as investors snapped up government bonds amid the sharp sell-off in U.S. stocks. The Fed can likely stop raising U.S. interest rates once they reach about 3 percent, as long as inflation remains around 2 percent and the economy is doing well, Chicago Federal Reserve President Charles Evans suggested on Wednesday. European Union Brexit negotiator Michel Barnier said on Wednesday that an agreement with Britain could be "within reach" next week, calling for decisive progress in the talks in time for a summit of all 28 EU leaders. Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 1.21 percent to 738.99 tonnes on Wednesday. GOL/ETF

* India's gold imports in September dropped more than 14 percent from a year ago as a rally in local prices due to a depreciating rupee reduced demand in the world's second-biggest consumer of bullion, provisional data from precious metals consultancy GFMS showed. Chile's Supreme Court upheld an environmental order for a gold mine owned by Canada's Kinross Gold Corp K.TO to close its water pumping wells, the environmental regulator said on Wednesday, bringing the curtain down on a long-running dispute that sparked the Toronto-based miner's retreat from Chile. Canada's Barrick Gold Corp ABX.TO , which recently announced a $6.1 billion deal to acquire Randgold Resources Ltd RRS.L , affirmed its 2018 gold and copper production forecast on Wednesday, reflecting improvements in operations. AHEAD (GMT)

0645 France Consumer prices


1230 U.S. Consumer prices


1230 U.S. Weekly jobless claims

1500 U.S. Cleveland Fed CPI