Gold struggles at $1,095 low with stronger dollar
(Reuters) – Gold fell for a third session on Monday, trading not far above its lowest level since early 2010, with expectations of further losses in the metal as the Federal Reserve moves closer to raising interest rates.
The Fed will hold a policy meeting this week at which policymakers are likely to provide more signals pointing to a rate hike later in the year as the U.S. economy strengthens.
* Spot gold was down 0.3 percent at $1,095.50 an ounce by 0035 GMT, after falling for a fifth straight week.
* Bullion lost more than 3 percent last week following a rout, accompanied by big volumes in New York and Shanghai that began on Monday and pulled the price to as low as $1,077 on Friday, its cheapest since February 2010.
* U.S. gold for August delivery gained 0.9 percent to $1,095.10 an ounce.
* Gold is expected to struggle for the rest of this year after sliding to five-year lows on expectations of higher U.S. interest rates, before snapping three years of losses in 2016, a Reuters poll showed.
* As gold prices slumped, holdings of the world’s biggest gold-backed exchange-traded fund, the SPDR Gold Trust, fell for a seventh day on Friday to 21.87 million ounces, the lowest since September 2008.
* U.S. speculators turned bearish on Comex gold for the first time in at least a decade in the week ended July 21 as a selloff in Shanghai and New York triggered the biggest rout in years, U.S. government data showed on Friday.
* Germany cut its gold holdings by 2.395 tonnes last month, data from the International Monetary Fund showed, while both Russia and Kazakhstan continued to add to their reserves.
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* Asian shares began the week on a plaintive note amid losses on Wall Street and worries over China, while investors braced for a Federal Reserve meeting that might take another small step toward lifting U.S. interest rates.
* The dollar was subdued against the euro and yen after a drop in U.S. shares and bond yields dimmed its allure, with markets focused on whether the upcoming Federal Reserve policy meeting can lift the greenback. (Manila/July27/2015)