PRECIOUS-Gold gains as dollar slips, focus shifts to Fed meet next week
Reuters · 09/15 10:57
PRECIOUS-Gold gains as dollar slips, focus shifts to Fed meet week

Gold bounces off three-week lows hit on Thursday

Yuan touches two-week high vs dollar

Platinum, palladium, and silver set for weekly gains

Recasts throughout, adds comments, details; updates prices and graphic as of 1031 GMT

By Harshit Verma


- Gold recovered from three-week lows on Friday aided by the dollar's retreat after better-than-expected Chinese data and a stronger euro, while traders focussed on the Federal Reserve's guidance on interest rates week.
Spot gold XAU= was up 0.4% to $1,917.49 per ounce by 1031 GMT, after hitting its lowest since Aug.23 in the previous session. U.S. gold futures GCcv1 gained 0.3% to $1,939.


"We are seeing a consolidation in the euro and the slightly-recovering yuan against the U.S. dollar. This is positive for gold, which is strongly holding above $1,900 per ounce," said Carlo Alberto De Casa, analyst at Kinesis Money.


"Gold holding above the $1,900-level is positive as it shows the resilience and investor interest in bullion," he added.

The dollar =USD slipped 0.2% against its rivals after hitting a six-month peak on Thursday, making gold less expensive for other currency holders. USD/

Data showed China's factory output and retail sales grew at a faster pace in August, boosting recovery hopes in the world's top bullion consumer.

Investors focus shifted to the U.S. central bank meeting due week, in which the Fed is widely expected to leave interest rates unchanged.

"The outlook for rates to be kept high for longer has been keeping -yielding gold prices under pressure," said Yeap Jun Rong, a market strategist at IG.

Data on Thursday showed U.S. producer prices increased by the most in more than a year in August while retail sales also beat expectations, boosted by a surge in gasoline prices.

Positive Chinese data supported other precious metals, with silver XAG= rising 2% to $23.09 per ounce, platinum XPT= gaining 1.3% to $917.68 and palladium XPD= up 1.2% at $1,266.59. All three metal's heading for weekly gains.


(Reporting by Harshit Verma and Brijesh Patel in Bengaluru; Editing by Janane Venkatraman)

((Harshit.Verma@thomsonreuters.com;))