Gold inches lower from 3-week high as dollar ticks up, US reopening in focus

Gold eased from a more than three-week high on Thursday as the dollar strengthened, while investors were awaiting the resumption of U.S. economic data to gauge the Federal Reserve interest rate path.

FUNDAMENTALS

* Spot gold was down 0.1% at $4,194.63 per ounce by 0203 GMT, after hitting its highest since October 21 on Wednesday.

* U.S. gold futures for December delivery eased 0.3% to $4,199.30 per ounce.

* The dollar index extended gains against its rivals, making gold less attractive for other currency holders.

* The House of Representatives took a procedural step toward ending the longest-ever government shutdown in U.S. history on Wednesday. * The shutdown began on October 1 and has halted the release of critical economic data, including payroll and inflation reports. * Economists said the U.S. Labor Department‘s statistical agency should prioritize the production of November employment and inflation reports to ensure Fed officials have up-to-date information at their December policy meeting.

* Last month, the Fed lowered interest rates by 25 basis points, but Chair Jerome Powell signalled caution over another rate cut this year, in part due to the lack of data.

* The U.S. central bank will again lower its key interest rate by 25 basis points next month to underpin a weakening labor market, according to 80% of economists polled by Reuters, up slightly from a poll taken last month.

* Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.

* Gold prices have surged 60% year-to-date, hitting an all-time high of $4,381.21 on October 20, buoyed by geopolitical and trade tensions and Fed rate-cut hopes.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.03% to 1,046.64 metric tons on Wednesday from 1,046.36 tons on Tuesday.

* Elsewhere, spot silver was steady at $53.37 per ounce, platinum rose 0.1% to $1,616.24, and palladium fell 0.6% to $1,465.21.

DATA/EVENTS (GMT)

0700 UK GDP Est 3M/3M Sep

0700 UK GDP Estimate MM, YY Sep

0700 UK Services MM, YY Sep

0700 UK Manufacturing Output MM Sep

0700 UK GDP Prelim QQ, YY Q3

1330 US Initial Jobless Clm 8 Nov.