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PRECIOUS METALS-Gold recovers some of its losses, but heads for weekly low

For Arundhati Sarkar

Sep 17 (Reuters) – Gold regained some ground on Friday after falling nearly 3% the day before, but a firm dollar kept bullion on its way to a weekly low as the market remains vigilant for the next meeting of the gold. United States Federal Reserve.

* At 0925 GMT, spot gold was up 0.7% at $ 1,765.73 an ounce, while US gold futures were up 0.6% at $ 1,766.30.

* Bullion fell nearly 3% on Thursday, after an unexpected surge in US retail sales bolstered expectations that the Fed could reduce its stimulus earlier, also fueling a dollar rally.

* The dollar hovered near a nearly three-week high on Friday, increasing the cost of gold for holders of other currencies, leaving gold on track to post a 1.2% weekly decline.

* “Everyone is viewing the Fed as having a hard line position. It would be very tempting after a $ 40 drop (looking for an entry point) despite the fact that the stimulus reduction debate is still continues, “said StoneX analyst Rhona O’Connell.

* “Investors will look for economic projections at Jay Powell’s press conference,” O’Connell said, adding that a really aggressive change from the Federal Open Market Committee (FOMC) would not curb the possibility of another. The reaction reflects the downward trend of gold, even if it has already been considered in its price.

* The FOMC meeting will be held September 21-22.

* But the rebound in gold, driven in part by hedging short positions, “looks anemic and gold faces testing the $ 1,750 level as the dollar holds firm,” said Jeffrey Halley, senior market analyst. for Asia Pacific at OANDA.

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