RPT-PRECIOUS-Gold hits one-week low after U.S. economic data

Reuters

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 (Repeats report, no changes to text) 
    * GRAPHIC-2017 asset returns: http://tmsnrt.rs/2jvdmXl 
    * Gold set for third straight weekly decline 
 
    By Marcy Nicholson and Zandi Shabalala 
    NEW YORK/LONDON, Nov 3 (Reuters) - Gold fell to a one-week 
low on Friday as consensus-beating U.S. economic data pushed the 
dollar higher, outweighing the impact of a  lackluster jobs 
report. 
    The greenback  .DXY  gained on a strong reading of U.S. 
factory orders and the services sector, reversing earlier losses 
after an underwhelming October jobs report.  FRX/  
    Spot gold  XAU=  fell 0.6 percent to $1,267.95 an ounce by 
2:26 p.m. EDT (1826 GMT), and was on track for third straight 
weekly decline. It hit its lowest level since Oct. 27 at 
$1,265.16. 
    U.S. gold  GCcv1  for December delivery settled down 0.7 
percent at $1,269.20. 
    "The data was in a conflicting sequence but it is overall 
making the case for not just one further rate hike by the Fed in 
December but also for further, gradual increasing of rates in 
2018," said Quantitative Commodity Research consultant Peter 
Fertig. 
    "The outlook for the interest side remains towards a 
stronger U.S. dollar so there are headwinds for gold." 
    The interest rate outlook for the coming year is largely 
unchanged by President Donald Trump's appointment of Jeremy 
Powell as Fed chairman as analysts said it signaled a 
continuation of Janet Yellen's cautious monetary policies. 
 urn:newsml:reuters.com:*:nL2N1N80D3 
    "This morning's weak jobs numbers should have been a boost 
to gold prices typically because the thought would be that maybe 
the Fed would change direction away from raising interest rates 
speedily," said Miguel Perez-Santalla, vice president of Heraeus 
Metal Management in New York. 
    "However, with the selection of Jerome Powell as the next 
Fed chairman that thought has quickly been discarded. This 
explains why, with this poor news, gold is still backing away 
like a scared dog."  
    World stock markets edged higher, buoyed by the U.S. 
economic data.  MKTS/GLOB  
    "I still remain cautious on gold until and unless it moves 
back above $1,300 again," said Fawad Razaqzada, technical 
analyst for Forex.com. 
    "There is still the potential for a drop to the support 
trend of its bullish channel around the $1,255 area before it 
decides on its next move."  
    SPDR Gold Trust  GLD , the world's largest gold-backed 
exchange-traded fund, said its holdings fell 0.4 percent on 
Thursday.  urn:newsml:reuters.com:*:nEMN0D6U80 
    Meanwhile in Asia, demand for physical gold was lackluster 
this week in top consumers India and China, while 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.  urn:newsml:reuters.com:*:nL4N1N92VC 
    In other precious metals, spot silver  XAG=  fell 1.7 
percent to $16.78 an ounce and platinum  XPT=  eased 0.6 percent 
to $919, while palladium  XPD=  turned up 0.2 percent to 
$998.10. 
 
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GRAPHIC-2017 asset returns:    http://tmsnrt.rs/2jvdmXl 
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 (Additional reporting by Arpan Varghese in Bengaluru, editing 
by David Evans and Tom Brown) 
 ((Marcy.Nicholson@thomsonreuters.com, +1 646 223 6043; Reuters 
Messaging Marcy.Nicholson.ThomsonReuters.com@reuters.net)) 
 
Keywords: GLOBAL PRECIOUS/  
     

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