June 7, 2018 / 4:39 AM / in 11 days

PRECIOUS-Gold inches up as euro gains against dollar

    * Markets look to central bank meetings, U.S.-N.Korea summit
    * SPDR holdings fall to lowest in over 3-months

 (Updates prices)
    By Karen Rodrigues
    BENGALURU, June 7 (Reuters) - Gold prices inched up on
Thursday as the euro rose to 2-week highs against the U.S
dollar, with investors waiting for meetings of key central banks
and the U.S.-North Korea summit all due next week.
    Spot gold        was up 0.1 percent at $1,297.46 per ounce
by 0703 GMT, while U.S. gold futures         for August delivery
were largely unchanged at $1,301.50 per ounce.
    The dollar index       , which measures the greenback
against a basket of six major currencies, fell 0.3 percent to
93.388.       
    The euro climbed to two-week highs against many of its
rivals on Thursday, on rising bets the European Central Bank
(ECB) may announce it will wind down its stimulus programme by
year-end as early as next week.                   
    "A strong euro means a weaker dollar, so that's definitely
the reason that gold is firm," said Yuichi Ikemizu, Tokyo branch
manager at CIBC Standard Bank.
    "The market is pretty quiet, there is no big factor to make
the market move at the moment," Ikemizu said, adding that
investors were waiting for events next week.
    A Federal Reserve policy meeting and U.S.-North Korea summit
are both due next week, while a G7 summit begins this Friday in
Quebec.              
    Expectations of higher interest rates and a surge in
equities have capped gains in non-interest-paying bullion, which
is priced in dollars.
    Asian shares rose to a fresh 11-week high on Thursday,
supported by sound economic fundamentals.            
    "Despite the very tight trading ranges, we remain cautiously
optimistic on gold and see it moving higher over the course of
June, although not substantial amounts," INTL FCStone analyst
Edward Meir said in a note.
    "For now, it seems to be a 'watch and wait' game for a
little while longer, as speculative money has clearly moved on
to more exciting markets."
    Outflows of North American gold-backed exchange traded funds
(ETFs) rose in May, as volatility in the gold market dragged
prices lower, the World Gold Council said on Wednesday.
            
    Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.42 percent to 832.59
tonnes on Wednesday, the lowest in over three-months.          
    Meanwhile, silver        rose 0.3 percent to $16.69 per
ounce.
    Platinum        was up 0.3 percent to $905.50 an ounce and
palladium        was 0.1 percent higher at $1,016.80.

 (Reporting by Karen Rodrigues in Bengaluru; Editing by Joseph
Radford and Sunil Nair)
  
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