SINGAPORE, Nov 26 (Reuters) - Gold hovered close to its
lowest in nearly six years on Thursday, as the dollar held at
multi-month highs and U.S. economic data reinforced market
expectations of an interest rate hike this year.
FUNDAMENTALS
* Spot gold was little changed at $1,070.80 an ounce
by 0031 GMT, after dropping 0.4 percent on Wednesday. The metal
had fallen to $1,064.95 last week, the lowest since February
2010.
* Data on Wednesday showed that U.S. manufacturing output
rose well above economists' expectations in October, while
business spending plans surged. New applications for
unemployment benefits dropped last week.
* Though other data showed only a small increase in U.S.
consumer spending in October, it did little to alter views that
the economy was strong enough for the Federal Reserve to raise
rates at its next policy meeting in December.
* Higher rates would dent the appeal of non-interest-paying
bullion, while boosting demand for the dollar.
* The dollar climbed to its highest in eight months against
a basket of major currencies on Wednesday on the robust U.S.
data.
* A stronger greenback makes dollar-denominated gold
expensive for holders of other currencies.
* Gold had seen some safe-haven bids earlier in the week
after Turkey downed a Russian fighter jet, stoking tensions
between the two countries, but have faded since as investors
fretted over the U.S. rate hike.
* Any worsening of tensions could see investors seeking
safety in bullion. Russia sent an advanced missile system to
Syria on Wednesday to protect its jets operating there and
pledged its air force would keep flying missions near Turkish
air space.
* Exchanges, brokers and data vendors are interested in
providing clearing or reporting services to make the gold market
more liquid and transparent, the London Bullion Market
Association said on Wednesday.
* The U.S. Mint said on Wednesday that it would begin sales
of 2015 American Eagle platinum proof coins on Dec. 3 but would
not produce 2015 platinum bullion coins this year due to a lag
in obtaining a sufficient amount of blanks.
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MARKET NEWS
* Asian shares advanced in early trade on Thursday, while
growing bets the European Central Bank was gearing up to deliver
further stimulus steps kept the euro under pressure.
DATA AHEAD (GMT)
No major data on tap for Thursday. U.S. markets shut for
Thanksgiving holiday.
PRICES AT 0031 GMT
Metal Last Change Pct chg
Spot gold 1070.8 -0.21 -0.02
Spot silver 14.16 0.01 0.07
Spot platinum 843.45 4.71 0.56
Spot palladium 558.45 4.2 0.76
Comex gold 1070.4 0.4 0.04
Comex silver 14.15 -0.008 -0.06
COMEX gold and silver contracts show the
most active months
(Reporting by A. Ananthalakshmi; Editing by Richard Pullin)
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