May 7, 2018 / 12:52 AM / 2 months ago

PRECIOUS-Gold prices crawl up as dollar pauses rally

    BENGALURU, May 7 (Reuters) - Gold prices edged up in early
trade on Monday as the dollar took a breather after climbing to
its highest level this year in the previous session.    
    
    FUNDAMENTALS  
    * Spot gold        rose 0.2 percent to $1,316.62 per ounce
at 0034 GMT.
    * U.S. gold futures         for June delivery were up 0.2
percent at $1,317.20 per ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, was steady at 92.547
after hitting its best since December at 92.900 on Friday. 
       
    * U.S. job growth increased less than expected in April and
the unemployment rate dropped to near a 17-1/2-year low of 3.9
percent as some out-of-work Americans left the labor force.             
    * Two Federal Reserve officials who are currently voting
members of the U.S. central bank's rate-setting committee said
on Friday they were keeping an open mind on the total number of
interest rate rises needed this year.             
    * U.S. interest rate futures rose modestly on Friday, as
traders still expect the Federal Reserve to raise key borrowing
costs at its June 12-13 policy meeting in the wake of
weaker-than-forecast growth in domestic payrolls and wages in
April.             
    * Euro zone business growth dimmed again in April but the
picture remained relatively bright as new business stayed
buoyant and firms managed to build up backlogs of work, a survey
showed on Friday.             
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.17 percent to
864.13 tonnes on Friday from 865.60 tonnes on Thursday.
            
    * Hedge funds and money managers trimmed their net long
positions in COMEX gold contracts in the week to May 1, U.S.
Commodity Futures Trading Commission (CFTC) data showed on
Friday.             
    * Demand for physical gold barely changed in major Asian
hubs last week even as global prices weakened, while a
correction in local rates in India prompted retail consumers and
jewellers to start purchases.             
    * The World Gold Council, owner of the world's largest
gold-backed exchange traded fund (ETF), is launching a new fund
with a cut-price management fee to fend off rivals with lower
charges, a source familiar with the matter told Reuters.
            
    
        
    DATA/EVENT AHEAD (GMT)
    0600  Germany       Industrial orders           Mar
    0830  Euro zone     Sentix index                May
    1400  U.S.          Employment trends           Apr
    *     China         Forex reserves              Apr
    
    * No exact timing
     

 (Reporting by Apeksha Nair in Bengaluru; editing by Richard
Pullin)
  
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