Gold down on U.S. rate hike expectations; ECB meeting in focus

Gold edged down early on Wednesday ahead of an expected U.S. Federal Reserve rate hike next week and as markets waited for clues on the future of the European Central Bank's asset purchase program. 

 

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                  FUNDAMENTALS

* Spot gold was down 0.2 % at $1,167.56 an ounce by 0036 GMT. The yellow metal ended the previous session nearly flat.

* U.S. gold futures were nearly flat at $1,170.30.

* The euro and dollar drifted sideways early on Wednesday as a wait-and-see mood prevailed ahead of Thursday's European Central Bank policy meeting, which may set the tone in a post-Trump rally currency market. [USD/]

* The euro was boosted last Friday by news that the ECB, while possibly extending its bond purchases beyond next March, may consider sending a formal signal that the asset purchase program will eventually end.

* The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in October as exports of soybeans and other products fell, suggesting trade would be a drag on growth in the fourth quarter.

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