June 6, 2018 / 1:23 AM / in 19 days

PRECIOUS-Gold edges up as dollar, treasury yields ease

    BENGALURU, June 6 (Reuters) - Gold prices inched higher in
early Asian trade on Wednesday as the U.S. dollar and treasury
yields eased amid lingering concerns about global trade after
the United States imposed tariffs on its allies. 
    
    FUNDAMENTALS  
    * Spot gold        was up 0.2 percent at $1,297.64 per ounce
by 0106 GMT. 
    * U.S. gold futures         for August delivery were steady
at $1,301.80 per ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, was down 0.1 percent
at 93.829.       
    * U.S. Treasury yields fell on Tuesday as traders piled back
into lower-risk government debt after Italy's new prime minister
vowed to enact economic policies that could balloon the nation's
already-heavy debt load.      
    * Italy's new prime minister promised on Tuesday to bring
radical change to the country, including more generous welfare
and a crackdown on immigration, as the two party bosses who hold
the keys to his anti-establishment government nodded their
approval.             
    * U.S. President Donald Trump is considering a shift in the
effort to revamp the North American Free Trade Agreement to
separate talks with Canada and Mexico, White House economic
adviser Larry Kudlow said on Tuesday.             
    * Mexico put tariffs on American products ranging from steel
to pork and bourbon on Tuesday, retaliating against import
duties on metals imposed by President Donald Trump and taking
aim at Republican strongholds ahead of U.S. congressional
elections in November.             
    * The European Union does not expect any breakthrough on
steel and aluminium tariffs imposed by the United States on the
EU and Canada at talks of G7 leaders in Canada later this week,
a senior EU official said on Tuesday.             
    * U.S. services sector activity accelerated in May, pointing
to robust economic growth in the second quarter, but trade
tariffs and a shortage of workers posed a threat to the outlook.
            
    * The Federal Reserve's next interest rate increase will
mark a key milestone as the era of cheap dollars draws to a
close, further unsettling a U.S. bond market already rattled by
rising inflation and government debt supply.             
    * Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.03 percent to 836.13
tonnes on Tuesday from 836.42 tonnes on Monday.             
    * Gold jewellery sales in number one market China are
finally picking up after years of decline, but consumers are
still shying away from platinum.             
    
    DATA AHEAD (GMT)
    
    1230  U.S.     International trade     April

 (Reporting by Karen Rodrigues in Bengaluru; Editing by
Subhranshu Sahu)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below