Manila: Gold steadied not far from a 5-1/2-year low early on Wednesday after comments from a Federal Reserve official backed investor expectations that the U.S. central bank would hike interest rates as early as next month.
Spot gold was little changed at $1,086.35 an ounce by 0037 GMT. Bullion has stayed largely below $1,100 since breaching that key support level in a late July rout that pulled the metal to as low as $1,077, its weakest since February 2010.
U.S. gold for delivery in December slipped 0.4 percent to $1,086.20 an ounce.
Atlanta Federal Reserve President Dennis Lockhart has said it would take "significant deterioration" in the U.S. economy for him to not support a rate hike in September, according to the Wall Street Journal.
Gold, an asset that does not earn interest, has taken a hit given rising risks of a U.S. rate hike. The Fed looks intent on lifting rates this year for the first time since 2006 as the U.S. economy strengthens, particularly its labour market.
New orders for U.S. factory goods rebounded strongly in June on robust demand for transportation equipment and other goods, a hopeful sign for the struggling manufacturing sector.
Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped further on Tuesday to 21.56 million ounces, the lowest since September 2008.
Gold sales at the Perth Mint climbed to a nine-month high in July after a slide in prices of the precious metal to their lowest since 2010 drew buyers.
Spot gold was little changed at $1,086.35 an ounce by 0037 GMT. Bullion has stayed largely below $1,100 since breaching that key support level in a late July rout that pulled the metal to as low as $1,077, its weakest since February 2010.
U.S. gold for delivery in December slipped 0.4 percent to $1,086.20 an ounce.
Atlanta Federal Reserve President Dennis Lockhart has said it would take "significant deterioration" in the U.S. economy for him to not support a rate hike in September, according to the Wall Street Journal.
Gold, an asset that does not earn interest, has taken a hit given rising risks of a U.S. rate hike. The Fed looks intent on lifting rates this year for the first time since 2006 as the U.S. economy strengthens, particularly its labour market.
New orders for U.S. factory goods rebounded strongly in June on robust demand for transportation equipment and other goods, a hopeful sign for the struggling manufacturing sector.
Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped further on Tuesday to 21.56 million ounces, the lowest since September 2008.
Gold sales at the Perth Mint climbed to a nine-month high in July after a slide in prices of the precious metal to their lowest since 2010 drew buyers.
© Thomson Reuters 2015
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