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PRECIOUS-Gold edges lower for sixth session on Fed stimulus worries

Sunday, 3 Nov 2013 | 7:32 PM ET

SINGAPORE, Nov 4 (Reuters) - Gold eased for a sixth straight session on Monday to trade near near two-week lows as renewed uncertainty over when the U.S. Federal Reserve will scale back its stimulus measures weighed on sentiment.

FUNDAMENTALS

* Spot gold fell 0.1 percent to $1,313.54 an ounce by 0014 GMT, after posting a near 3 percent weekly drop. It fell to a low of $1,305.69 on Friday - its lowest since Oct. 17.

* A top Federal Reserve official said on Friday the U.S. labour market has recovered enough in the last 14 months to allow the central bank to reduce its bond-buying stimulus.

* Another official said inflation has to be higher before the Fed decides to scale back.

* The Fed's $85 billion monthly bond purchases have burnished gold's appeal as a hedge against inflation, boosting prices, but signs that the bank is nearing a tapering of the purchases have hurt prices this year.

* The U.S. Mint's American Eagle gold coin sales rose to a two-year high on Friday, lifting 2013 sales above the previous year's total and reflecting the consistently strong demand for physical bullion coins among retail investors.

* Hedge funds and money managers broadly raised bullish bets in futures and options of U.S. gold, silver and copper for the week ended Oct. 22, a report by the Commodity Futures Trading Commission showed on Friday.

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MARKET NEWS

* Asian markets started the week on a sluggish note on Monday, while the euro languished at two-week lows.

DATA/EVENTS (GMT) 0843 Italy Markit/ADACI Manufacturing PMI 0853 Germany Markit/BME Manufacturing PMI 0858 Euro zone Markit Manufacturing PMI 0930 Euro zone Sentix index 1445 U.S. ISM-New York business activity 1500 U.S. Factory orders

Precious metals prices 0014 GMT

Metal Last Change Pct chg YTD pct chg Volume Spot Gold 1313.54 -1.20 -0.09 -21.56 Spot Silver 21.84 0.01 +0.05 -27.87 Spot Platinum 1449.74 6.04 +0.42 -5.55 Spot Palladium 737.22 -0.57 -0.08 6.53 COMEX GOLD DEC3 1313.70 0.50 +0.04 -21.61 1452 COMEX SILVER DEC3 21.86 0.02 +0.08 -27.89 234 Euro/Dollar 1.3489 Dollar/Yen 98.74

COMEX gold and silver contracts show the most active months

(Reporting by A. Ananthalakshmi; Editing by Richard Pullin)