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Prices of gold and silver extended their losses on Friday after a stronger-than-expected U.S. economic data pushed the dollar higher and fuelled expectations that the Federal Reserve will not cut interest rates for a while.
FUNDAMENTALS
* Spot gold eased 0.3% to $4,601.53 per ounce by 0217 GMT. Prices are still poised for about a 2% weekly gain after scaling a record peak of $4,642.72 on Wednesday.
* U.S. gold futures for February delivery fell 0.4% to $4,605.20.
* The dollar was poised for a third weekly gain on Friday after data from the U.S. Labor Department showed weekly initial jobless claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 198,000, below expectations of economists polled by Reuters calling for 215,000 claims.
* A firmer dollar makes greenback-priced metals more expensive for overseas buyers. Gold, a non-yielding asset, also benefits from low rates because they reduce the opportunity cost of holding it.
* Gold's safe-haven appeal weakened further as geopolitical tensions eased. U.S. President Donald Trump said he was informed that fatalities in Iran's protest crackdown were declining and that he did not believe authorities were planning mass executions.
* China's central bank announced cuts on Thursday to sector-specific interest rates to provide an early boost to the economy.
* Poland's central bank wants to hike its gold reserves to 700 tons, its governor said on Thursday.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings nudged 0.05% higher to 1,074.80 tons on Thursday.
* Individual investors have been snapping up silver at such a pace it has turned into the most crowded commodity trade in the market, according to a report published on Thursday by Vanda Research.
* TD Securities said on Wednesday in a model portfolio update publication that it closed a short silver position after prices hit its exit level at $93.15 an ounce, resulting in a theoretical loss of about $606,000.
* Spot silver shed 1.6% to $90.80 per ounce. It was headed for a weekly gain of about 13% after hitting an all-time high of $93.57 in the previous session.
* Spot platinum dropped nearly 2% to $2,363.11 per ounce, while palladium fell 0.8% to $1,786.13 per ounce.
DATA/EVENTS (GMT) 0700 Germany HCIP Final YY December 1415 US Industrial Production MM December
(Reporting by Swati Verma in Bengaluru; Editing by Sherry Jacob-Phillips)





















