SINGAPORE, Nov 22: Gold was heading for its sharpest weekly drop in more than two months as strong U.S. economic data and a possible early rollback of the Federal Reserve’s stimulus measures sent the metal to its lowest since early July.
FUNDAMENTALS
* Spot gold was steady at $1,242.71 an ounce by 0016 GMT, after hitting a fresh four and a half month low of $1,236.29 in the previous session.
* Gold and silver were both on track for a near 4-percent weekly drop.
* The number of Americans filing new claims for jobless benefits fell sharply last week and a gauge of factory activity hit an eight-month high in early November, hinting at some strength in the economy.
* Earlier this week, minutes of the Fed’s October meeting showed central bankers could start tapering the $85 billion monthly bond-buying stimulus at one of their next few meetings.
* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 3.6 tonnes to 856.71 tonnes on Thursday – their lowest since early 2009.
* A gas explosion has killed as many as 25 people in a gold mine in Africa’s Guinea, a resident and a police source said on Thursday.
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MARKET NEWS
* The yen fell to a fresh four-year low against the euro early in Asia on Friday, left exposed after promising data in both Germany and the United States underpinned the single currency and the U.S. Dollar.
(agencies)
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