×

PRECIOUS-Gold prices inch down as stronger dollar weighs

Nov 13 (Reuters) - Gold prices edged lower early on Monday in the wake of their biggest one-day percentage loss in about two weeks in the previous session, weighed down as the U.S. dollar firmed.

FUNDAMENTALS

* Spot gold was down 0.1 percent at $1,274.90 per ounce at 1254 GMT. On Friday, gold dropped 0.7 percent for its biggest one-day percentage fall since Oct. 26. However, it ended the week about 0.5-percent higher in its first weekly rise in a month.

* U.S. gold futures for December delivery gained 0.1 percent to $1,275.40. The dollar received a lift against its major peers as U.S. yields spiked and as the pound stumbled, although the main investor focus was still on how and when the planned U.S. tax overhaul would pan out.

* Gold's resilience in the face of soaring equities and a dramatic fall in demand this year points to underlying confidence in the metal among investors unconvinced by this autumn's scorching stock market rally.

* A Federal Reserve official said on Monday he expects to back an interest rate hike next month despite caution over the low-inflation "conundrum," since the U.S. central bank needs to prepare for any future economic shock.

* The head of the House of Representatives' tax-writing committee said on Sunday he would not accept elimination of a federal deduction for state and local taxes, opposing a proposal from Senate Republicans that would hike taxes for some middle class Americans.

* U.S. President Donald Trump on Sunday attempted to clear up confusion over whether he accepts Russian President Vladimir Putin's denials of meddling in the U.S. election last year.

* Leaders from across Asia joined Trump at an extravagant gala dinner in the Philippines' capital on Sunday, a show of amity in a region fraught with tensions that have lurked behind his marathon tour of the continent.

* U.S. Treasury yields rose on Friday, steepening the yield curve, as traders closed out some curve-flattener positions and dealers reduced their holdings of longer-dated debt following this week's auctions.

* Demand for physical gold in Asia remained tepid last week as high prices kept buyers on the sidelines despite the start of the wedding season in India.

DATA/EVENT AHEAD (GMT) 0700 Germany Wholesale price index Oct

(Reporting by Vijaykumar Vedala in Bengaluru; Editing by Joseph Radford)