Dec 6 (Reuters) – Gold prices were little changed in early Asian trade on Tuesday, after falling more than 1.5% in the previous session as the US dollar rebounded on bets that strong economic data may prompt bigger interest rate hikes by the Federal Reserve.
* Spot gold was flat at USD 1,768.61 per ounce, as of 0011 GMT. Bullion hit a five-month high on Monday before closing 1.6% lower in its biggest daily drop since Sept. 23.
* US gold futures were little changed at USD 1,780.90.
* The dollar index rebounded on Monday after data showed US services industry activity unexpectedly picked up in November, prompting speculation the Fed may lift interest rates more than recently projected.
* Higher interest rates tend to weigh on gold’s appeal as they increase the opportunity cost of holding the non-yielding metal.
* Meanwhile, the European Central Bank is likely to raise interest rates by 50 basis points next week, governing council member Gabriel Makhlouf said on Monday.
* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 903.46 tons on Monday.
* Top bullion consumer China is set to announce a further easing of some of the world’s toughest COVID curbs as early as Wednesday, sources said, as investors cheered the prospect of a policy shift that follows widespread protests and mounting economic damage.
* Spot silver inched 0.1% lower to USD 22.23, platinum was flat at USD 997.84 and palladium rose 0.2% to USD 1,878.93.
0030 Australia Current Account Balance SA Q3
0030 Australia Net Exports Contribution Q3
0700 Germany Industrial Orders MM Oct
0700 Germany Manufacturing O/P Cur Price SA Oct
0700 Germany Consumer Goods SA Oct
1330 US International Trade Oct
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu)
This article originally appeared on reuters.com