Dec 8 (Reuters) - Gold prices edged higher on Monday, as
rising expectations of a U.S. Federal Reserve interest rate cut
this week pressured the dollar.
FUNDAMENTALS
* Spot gold was up 0.3% at $4,206.99 per ounce, as of
0118 GMT.
* U.S. gold futures for December delivery lost 0.2%
to $4,236.30 per ounce.
* The U.S. dollar edged lower to hover near six-week
lows touched on December 4, making greenback-priced gold cheaper
for overseas buyers.
* U.S. consumer spending increased moderately in September
after three straight months of solid gains, suggesting a loss of
momentum in the economy at the end of the third quarter as a
lacklustre labour market and rising cost of living curbed
demand.
* This followed private payroll data showing the sharpest
decline in more than two-and-a-half years last month.
* Dovish commentary from several Fed officials has further
fuelled expectations of monetary easing.
* CME's FedWatch tool indicates an 88.4% probability of a
25-basis-point rate cut at the Fed's December 9-10 meeting.
* Lower interest rates tend to favour non-yielding assets
such as gold.
* On Thursday, data showed new U.S. unemployment benefit
claims dropped to 191,000 for the week ended November 29, the
lowest in more than three years and well below economists'
estimate of 220,000.
* Elsewhere, silver was steady at $58.25 per ounce,
platinum gained 0.3% to $1,646.56, while palladium
slid 0.5% to $1,455.55.
DATA/EVENTS (GMT)
0700 Germany Industrial Output MM, YY SA Oct
0745 France Reserve Assets Total Nov
(Reporting by Ishaan Arora in Bengaluru, Editing by Subhranshu
Sahu)
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