August 28, 2019 / 1:43 AM / 24 days ago

PRECIOUS-Gold holds near six-year high on economic gloom

    Aug 28 (Reuters) - Gold prices held steady on Wednesday,
trading close to a more than six-year high on fears of an
economic slowdown amid a protracted Sino-U.S. trade conflict,
boosting appetite for the safe-haven metal.
    
    FUNDAMENTALS
    * Spot gold was steady at $1,542.90 per ounce, as of
0100 GMT.
    * Gold prices jumped 1% on Tuesday, and traded close to
Monday's high of $1,554.56, last reached in April 2013.
    * U.S. gold futures inched up 0.1% to $1,553.30 an
ounce.
    * The yield curve inversion on benchmark U.S. 10-year
Treasuries compared with the two-year yield
 was at its deepest since May 2007, when the U.S.
subprime financial crisis started to unfold.
    * The U.S. yield curve inversion, a portent for several past
U.S. recessions, sent Wall Street stocks tumbling down on
Tuesday.
    * Investors are also focused on Sept. 1, when the first
stage of U.S. tariffs on $300 billion worth of Chinese goods is
scheduled to go into effect. In response, China has unveiled
tariffs on U.S. products set to go into effect the same day.
    * On Tuesday, data showed that U.S. consumer confidence
 inched down in August, and growth in home prices
hit its slowest pace in nearly seven years.
    * SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings rose 1.6% to 873.32
tonnes on Tuesday from Monday.
    * The dollar index against a basket of six major currencies
 stood little changed after dipping 0.1% overnight.
    * Markets are fully priced in for a quarter-point cut in
interest rates by the U.S. Fed next month, and over 100 basis
points of easing by the end of next year.
    * Spot silver touched a high of $18.29 an ounce, its
highest since April 2017.   
    
    DATA AHEAD (GMT)    
  0600  Germany    GfK Consumer Sentiment   Sept
  0600  Germany    Import Prices MM, YY     July
  0800  Italy      Consumer Confidence      Aug
  0800  Euro Zone  Money-M3 Annual growth   July
 

 (Reporting by Harshith Aranya in Bengaluru; editing by Richard
Pullin)
  
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