Gold Holds Overnight Losses On Firmer Dollar

Gold held on to its losses from the previous session early on Friday, after the dollar rose on expectations of a rate hike by the US Federal Reserve this year.

                   FUNDAMENTALS 

* Spot gold was flat at USD 1,339.30 an ounce at 0107 GMT, having fallen about 0.6 percent on Friday. 

 

* US gold was down 0.4 % at USD 1,345 an ounce. 

 

* The US dollar rose 0.1% to 95.959 against a basket of currencies, while Asian stocks rose slightly in early Friday trade, taking a cue from Wall Street's records overnight. 

 

 * The US Fed is likely to raise interest rates in December, after the Nov. 8 presidential election, according to a Reuters poll that also predicted a pick-up in economic growth but with still relatively subdued inflation.

 

* India's gold demand may rise in the second half of 2016 after falling to the lowest in seven years in the first half as beneficial monsoon rains will spur rural demand during the peak festive season, the World Gold Council said. 

 

* Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.03 % to 972.32 tonnes on Thursday.

 

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