Gold set for weekly drop; market awaits more US data for economic cues
Dec 20 (Reuters) -Gold prices were poised for a weekly fall on Friday after the Federal Reserve's verdict on its monetary policy-easing cycle noted a slowdown in cuts, while market focus shifted to the U.S. Personal Consumption Expenditure data due later in the day.
FUNDAMENTALS
* Spot gold XAU= was flat at $2,594.59 per ounce, as of 0034 GMT, and has lost more than 2% this week.
* U.S. gold futures GCv1 were also steady at $2,609.30.
* Investors now await the core PCE data, the Fed's preferred inflation measure, for further clues on the U.S. economic outlook.
* The Fed cut rates by 25 basis points and the cautious note struck by its economic projections and expected slowdown of rate cuts pushed gold on Wednesday to its lowest point since Nov. 18.
* Data showed on Thursday that the U.S. economy grew faster than expected in the third quarter, while jobless claims also slipped more than anticipated, reinforcing expectations that the central bank will take a cautious approach to policy easing in the coming year.
* Bank of England policymakers voted 6-3 to keep interest rates on hold on Thursday. A Reuters poll showed that top consumer China is widely expected to leave its benchmark lending rates unchanged later on Friday.
* Higher rates dull the appeal of the non-yielding gold.
* Spot silver XAG= steady at $29.02 per ounce, platinum XPT= was down 0.4% to $919.70 and palladium XPD= eased 0.2% to $904.21.
* All three metals were poised for weekly losses.
DATA/EVENTS (GMT)
0100 China Loan Prime Rate 1Y, Loan Prime Rate 5Y Dec
0700 UK Retail Sales MM, Retail Sales Ex-Fuel MM, Retail Sales YY Nov
0745 France Producer Prices YY Nov
1330 US Consumption, Adjusted MM Nov
1330 US Core PCE Price Index MM, Core PCE Price Index YY Nov
1330 US PCE Price Index MM, PCE Price Index YY Nov
1500 EU Consumer Confid. Flash Dec
1500 US U Mich Sentiment Final Dec
Reporting by Rahul Paswan in Bengaluru; Editing by Sherry Jacob-Phillips
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