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PRECIOUS-Gold holds near one-month peak despite firmer dollar
November 20, 2017 / 1:17 AM / 22 days ago

PRECIOUS-Gold holds near one-month peak despite firmer dollar

    Nov 20 (Reuters) - Gold prices dipped early on Monday,
weighed down by a stronger U.S. dollar, but held close to a
one-month high hit in the previous session.
    
    FUNDAMENTALS    
    * Spot gold        edged down 0.1 percent to $1,293.28 per
ounce by 0057 GMT. On Friday, gold jumped about 1.3 percent to
hit a one-month high of $1,297 an ounce due to uncertainty about
the progress of an overhaul of the U.S. tax code.
    * U.S. gold futures         for December delivery fell 0.2
percent to $1,293.60.
    * The dollar index       , which tracks the U.S. currency
against a basket of six major rivals, gained 0.3 percent.
    * U.S. President Donald Trump would not insist on including
repeal of an Obama-era health insurance mandate in a bill
intended to enact the biggest overhaul of the tax code since the
1980s, a senior White House aide said on Sunday.              
    * Slashing taxes may give the U.S. economy a temporary boost
but the "sugar rush" may cause deeper problems ahead, investors
at the Reuters Global Investment 2018 Outlook Summit in New York
said.             
    * U.S. homebuilding jumped to a one-year high in October as
disruptions caused by recent hurricanes in the South faded and
communities in the region started replacing houses damaged by
flooding.                
    * German Chancellor Angela Merkel's efforts to form a
three-way coalition government that would secure her a fourth
term hit a major setback on Sunday after a would-be coalition
partner pulled out of exploratory talks, citing irreconcilable
differences.             
    * The euro zone economy remains dependent on cheap credit
and the European Central Bank is using the extension of its
massive bond buys to push out any expectation for a rise in
borrowing costs, ECB President Mario Draghi said on Friday.
            
    * Hedge funds and money managers raised their net long
positions in COMEX gold and silver contracts in the week to Nov.
14, the U.S. Commodities Futures Trading Commission said on
Friday.             
    * Gold prices in India traded at a discount for the first
time in six weeks as the key wedding season failed to spur fresh
demand, while high prices curbed appetite for the precious metal
in major Asian centres except China.             
    * Asian shares started the week on the back foot on Monday,
pressured by a retreat on Wall Street amid tax reform
uncertainty while the euro skidded after German coalition talks
hit an impasse.            
    
    DATA/EVENT AHEAD (GMT)
    0700  Germany Producer prices                    Oct
    1400  European Central Bank President Mario Draghi speaks to
          the European Parliament's economic committee
    1500  U.S. Leading index                         Oct

 (Reporting by Vijaykumar Vedala in Bengaluru; editing by
Richard Pullin)
  

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