Gold edges higher after last week's sharp declines
Nov 18 (Reuters) -Gold prices inched higher on Monday following last week's sharp declines, although expectations of slow U.S. interest rate cuts limited the recovery.
FUNDAMENTALS
* Spot gold XAU= gained 0.4% to $2,571.11 per ounce by 0041 GMT, after hitting a two-month low last week. Gold posted its biggest weekly decline in more than three years on Friday.
* U.S. gold futures GCv1 rose 0.2% to $2,575.70.
* The dollar was looking to extend its bull run. A stronger dollar makes bullion more expensive for other currency holders. USD/
* Strong U.S. economic and inflation data continue to reshape the debate among Federal Reserve policymakers over the pace and extent of rate cuts as investors last week further downgraded their expectations for a rate reduction in December. FEDWATCH
* At least seven U.S. central bank officials are due to speak this week. Traders will keep an eye for further rate cut cues.
* Higher interest rates reduce the appeal of holding non-yielding bullion.
* Data on Friday showed that U.S. retail sales increased slightly more than expected in October, suggesting the economy kicked off the fourth quarter on a strong note.
* Physical gold premiums in India climbed to a near four-month high last week, driven by a rebound in demand as prices dropped. GOL/AS
* Elsewhere, President Joe Biden's administration has allowed Ukraine to use U.S.-made weapons to strike deep into Russia, two U.S. officials and a source familiar with the decision said on Sunday, in a significant reversal of Washington's policy in the Ukraine-Russia conflict.
* Spot silver XAG= firmed 0.6% to $30.39 per ounce, platinum XPT= was up 0.6% at $944.57 and palladium XPD= climbed 1.7% to $966.66.
DATA/EVENTS (GMT)
1000 EU Total Trade Balance SA Sept
1000 EU HICP Final MM Oct
1000 EU HICP Final YY Oct
UK House Price Rightmove MM Nov
UK House Price Rightmove YY Nov
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu
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