July 1, 2016 / 1:16 AM / 3 years ago

PRECIOUS-Gold holds overnight gains, heads for fifth weekly gain

BENGALURU, July 1 (Reuters) - Gold held on to its overnight
gains in Asian trade on Friday and was headed for its fifth
straight weekly gain, as a recovery in equity markets post the
Brexit vote was offset by a weaker dollar.
    
    FUNDAMENTALS
    * Spot gold was nearly flat at $1,321.56 an ounce by
0101 GMT. It rose 0.2 percent on Thursday, while registering its
biggest monthly rise since February. The yellow metal rose over
7 percent during the April-June quarter.
    * U.S. gold was up 0.3 percent at $1,324.40.
    * Silver marked its highest since Sept. 2014 at
$18.81 per ounce on Thursday, while registering its best quarter
in nearly four years.
    * Bank of England Governor Mark Carney said the central bank
would probably need to pump more stimulus into Britain's economy
over the summer after the shock of last week's decision by
voters to leave the European Union. 
    * Asian stocks rose on Friday as riskier assets continued to
recover from the Brexit shock, while the pound came under
renewed pressure after the Bank of England's governor hinted of
an interest rate cut ahead.  
    * Britons' vote to leave the European Union has benefited
gold as a haven from risk and could fuel longer-term gains if
economic uncertainty sparks a broader shift in global monetary
policy. 
    * Societe Generale on Thursday raised its gold price
forecasts on fears over the ongoing political, financial and
economic fallout of Britain's vote last week to leave the
European Union. 
    * Factory activity in the U.S. Midwest surged to its highest
in almost 1-1/2 years in June amid strong gains in new orders
and production, offering a ray of hope for the downtrodden
manufacturing sector. 
    * The London Bullion Market Association (LBMA) has taken
steps to help to preserve London's role as a major global gold
trading centre by making its management more open and
independent, documents seen by Reuters showed. 
    * CME on Thursday raised initial margins for trading COMEX
100 gold futures (GC) for speculators by 9.1 percent to $6,600
per contract from $6,050, while lowering margins for palladium
futures NYMEX (PA) by by 16.7 percent to $3,850 per contract
from $4,620.
    * For the top stories on metals and other news, click
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    DATA AHEAD (GMT)
     0100  China     Official manufacturing PMI         Jun 
     0100  China     Official non-manufacturing PMI     Jun 
     0145  China     Caixin manufacturing PMI final     Jun 
     0750  France    Markit manufacturing PMI           Jun 
     0755  Germany   Markit/BME manufacturing PMI       Jun 
     0800  Euro zone Markit manufacturing PMI final     Jun 
     0900  Euro zone Unemployment rate                  May 
     1400  U.S.      Construction spending              May 
     1400  U.S.      ISM manufacturing PMI              Jun 
  

 (Reporting By Nallur Sethuraman in Bengaluru; Editing by Ed
Davies)
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