Gold inches down as dollar gains after strong US data

Reuters

Nov 6 (Reuters) - Gold edged lower early Monday as the dollar firmed after upbeat U.S. economic data strengthened the prospect of further interest rate hikes by the Federal Reserve.

FUNDAMENTALS

* Spot gold was down 0.2 percent at $1,267.01 per ounce at 0107 GMT. On Friday, it fell 0.5 percent and touched a one-week low of $1,265.16.

* Asian shares hovered near decade highs, while the U.S. dollar was close to a three-and-half month high against a basket of currencies on Monday.

* U.S. President Donald Trump ramped up his tough rhetoric against North Korea when he arrived in Japan on Sunday, saying the United States and its allies are prepared to defend freedom and "no dictator" should underestimate U.S. resolve.

* U.S. job growth accelerated in October after hurricane-related disruptions in the prior month, but wages grew at their slowest annual pace in more than 1-1/2 years in a sign that inflation probably will remain benign.

* JPMorgan Chase & Co on Friday raised its forecast on the number of U.S. interest rate increases by the Federal Reserve next year to four from three as the October payrolls data reinforced the view of a tightening domestic labor market.

* U.S. House of Representatives Speaker Paul Ryan said on Sunday that Republican lawmakers are weighing a "host of ideas" as the House tax-writing committee begins revising a tax bill this week, though he expects the broad outlines to remain the same.

* Demand for physical gold was lacklustre in top consumers India and China last week. The lure of the metal remained stable in Singapore, but India's peak wedding season is expected to usher in renewed interest for bullion in coming weeks.

* Embattled London and Johannesburg-listed platinum producer Lonmin, will unveil new health and road projects in South Africa on Monday in a ceremony that will be overshadowed by its latest share price collapse.

* Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.03 percent to 845.75 tonnes on Friday.

* Hedge funds and money managers reduced their net long position in COMEX gold contracts for the seventh straight week,

in the week to Oct. 31, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

DATA/EVENT AHEAD (GMT)

0900 Euro Zone Markit Serv Final PMI Oct

Referenced Symbols:JPM,

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