August 5, 2019 / 1:44 AM / 2 months ago

PRECIOUS-Gold gains on weaker dollar, U.S.-China trade tension

Aug 5 (Reuters) - Gold prices edged higher on Monday, helped by a weaker dollar and escalating trade tension between the United States and China.

* Spot gold rose 0.2% to $1,443.56 per ounce as of 0107 GMT.

* U.S. gold futures inched down 0.1% to $1,455.40 an ounce.

* Expectations of further monetary policy easing sent the dollar skidding. The dollar index against a basket of six major rivals touched a one-week low on Monday.

* On Friday, China said it will fight back against U.S. President Donald Trump’s decision to impose an additional 10% tariff on $300 billion worth of Chinese imports.

* The tariffs may also force the Federal Reserve to again cut interest rates to protect the U.S. economy from trade-policy risks, experts said.

* Providing a further push for a second rate cut next month, U.S. July jobs data on Friday showed a slowdown in hiring and fewer hours for manufacturing workers.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.36% to 830.76 tonnes on Friday from 827.82 tonnes on Thursday.

* Asian shares extended their losses on Monday as a sharp escalation in the Sino-U.S. trade war kept financial markets on edge.

* Hedge funds and money managers raised their bullish stance in COMEX gold and silver contracts in the week to July 30, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

* Physical gold demand last week was mixed in Asian hubs as consumers cashed in on brief price rallies while global uncertainties prompted some safe-haven demand.

DATA AHEAD(GMT)

* 0145 China Caixin Services PMI July

* 0800 EU Markit Services, Comp Final PMI July

* 0830 UK Reserve Assets Total July

* 1345 US Markit Services, Comp Final PMI July

Reporting by Harshith Aranya in Bengaluru; editing by Uttaresh.V

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