BENGALURU, Dec 14 (Reuters) - Gold prices steadied on Friday,
after slipping to a week-low in the previous session, supported by the
uncertainty around the Federal Reserve's next year's policy outlook,
while the dollar strengthened on expectations of a rate hike next
* Spot gold was steady at $1,242.11 per ounce, as of 0133 GMT.
Prices fell to their lowest level since Dec. 7 at $1,239.83 on Thursday.
* U.S. gold futures were down 0.1 percent at $1,246.4 per ounce.
* Spot palladium was down 0.3 percent at $1,256.05 per ounce,
trading at a premium to gold. Prices hit an all-time high of $1,269.25
in the previous session.
* The dollar firmed against major counterparts as investor focus
shifted to an expected U.S. interest rate hike next week, although
gains are likely to be capped on greater uncertainty about next year's
* Asian shares were on the defensive as investors kept a wary eye
on economic tensions between Washington and Beijing, while the euro
was steady after the European Central Bank halted new bond purchases
* The number of Americans filing applications for jobless benefits
tumbled to near a 49-year low last week, which could ease concerns
about a slowdown in the labour market and economy.
* The risk of a U.S. recession in the next two years has risen to
40 percent, according to a Reuters poll of economists who also found a
significant shift in expectations toward fewer Federal Reserve
interest rate rises next year.
* European Union leaders assured Prime Minister Theresa May on
Thursday that the Brexit treaty she agreed last month but is
struggling to get through UK parliament should not bind Britain
forever to EU rules.
* The European Central Bank formally ended its 2.6 trillion euro
crisis-fighting bond purchase scheme on Thursday but promised to keep
feeding stimulus for years into an economy struggling with an
unexpected slowdown and political turmoil.
* Workers will return to Gold Fields' sole South African mine
on Thursday after a six-week strike was called off by the country's
National Union of Mineworkers (NUM), with production likely to resume
in earnest after Christmas.
DATA AHEAD (GMT)
0200 China Industrial output Nov
0200 China Retail sales Nov
0200 China Urban investment Nov
0700 Germany Wholesale price index Nov
0815 France Markit manufacturing flash PMI Dec
0830 Germany Markit manufacturing flash PMI Dec
0900 Italy Industrial orders Oct
0900 Euro zone Markit manufacturing flash PMI Dec
1000 Euro zone Labour costs Q3
1330 U.S. Retail sales Nov
1415 U.S. Industrial production Nov
1445 U.S. Markit manufacturing flash PMI Dec
1500 U.S. Business inventories Oct
(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi Aich)
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