November 13, 2019 / 2:28 AM / a month ago

PRECIOUS-Gold hit by uncertainty over U.S.-China trade deal, firmer dollar

    Nov 13 (Reuters) - Gold prices were flat on Wednesday as
investors stayed cautious after a much-awaited speech by U.S.
President Donald Trump gave no details on the signing of a trade
deal with China, while a firmer dollar dented demand for the
safe-haven asset.
    
    FUNDAMENTALS
    * Spot gold        was flat at $1,457.91 per ounce, as of
0116 GMT, while U.S. gold futures        were up 0.3% at $1,458
per ounce.
    * The U.S. dollar clung to most of its recent gains on
Wednesday after U.S. President Donald Trump said a trade deal
with China was "close". The dollar index       , which is
currently hovering near a month high, makes gold expensive for
holders of other currencies.
    * Asian stocks and Wall Street futures fell on Wednesday on
growing worries U.S.-China trade talks are stalling after Trump
failed to deliver any new information.                        
    * The months-long Sino-U.S. trade war has put financial
markets in turmoil and sparked fears of a global economic
slowdown, pushing the precious metal more than 13% higher this
year.
    * The political unrest in Hong Kong has also supported gold,
which is considered an alternative investment during times of
geopolitical and financial uncertainty. 
    * Police battled pro-democracy protesters at several
university campuses in sometimes savage clashes in the Asian
financial hub, as parts of the city were paralysed including
Hong Kong's Central financial district that was tear-gassed for
a second day running.             
    * Later in the day, U.S. Federal Reserve Chairman Jerome
Powell is scheduled to testify on economic outlook before the
congressional Joint Economic Committee.
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.45 percent to
897.09 tonnes on Tuesday from 901.19 tonnes on Monday.   
          
DATA/EVENTS (GMT)
0700   Germany    HICP Final YY            Oct
0930   UK         CPI YY                   Oct
1330   US         CPI MM, SA               Oct
1600   US         Federal Reserve Chairman Jerome Powell
testifies on the economic outlook before the congressional Joint
Economic Committee

 (Reporting by Diptendu Lahiri in Bengaluru, Editing by Sherry
Jacob-Phillips)
  
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