May 16, 2018 / 1:25 AM / 4 months ago

PRECIOUS-Gold prices edge up after hitting fresh 2018 low

    BENGALURU, May 16 (Reuters) - Gold prices recovered slightly
early on Wednesday, after sliding to the lowest level this year
in the previous session on surging U.S. bond yields and a
stronger dollar.        
    
    FUNDAMENTALS  
    * Spot gold        rose 0.2 percent to $1,292.73 per ounce
at 0048 GMT, after shedding 1.7 percent and marking the lowest
this year at $1,288.31 in the previous session.
    * This was also the lowest price level for the yellow metal
since Dec. 28.
    * U.S. gold futures         for June delivery were up 0.1
percent at $1,292.10 per ounce.
    * The dollar hovered near a five-month high against a group
of major currencies on Wednesday, as a surge in the benchmark
10-year Treasury yield above 3 percent reignited a rally that
had lost steam last week.       
    * The yield on the benchmark U.S. 10-year Treasury note hit
its highest in about seven years on Tuesday on the heels of a
report that indicated a pick-up in consumer spending, lifting
the dollar to its strongest level this year.      
    * U.S. retail sales increased marginally in April as rising
gasoline prices cut into discretionary spending, but consumer
spending appeared on track to accelerate after slowing sharply
in the first quarter.             ]
    * Federal Reserve Chair Jerome Powell's top deputies are
edging toward a clash that could shape the pace of interest-rate
hikes in coming months, as well as how the Fed should prepare
for and combat the next economic downturn.             
    * Bank of England Deputy Governor Ben Broadbent said in an
interview on Tuesday with the Telegraph that the central bank
will not "spoon feed" markets with meeting-by-meeting interest
rate hikes.             
    * The United States is seeking to make a trade deal with
China, White House economic adviser Larry Kudlow said on
Tuesday.             
    * North Korea on Wednesday threw into question an
unprecedented summit between its leader Kim Jong Un and U.S.
President Donald Trump scheduled for next month, denouncing
military exercises between South Korea and the United States as
a provocation and calling off high-level talks with Seoul.
            
    * Palestinians buried the dead on Tuesday from the bloodiest
day in Gaza in years, after Israeli forces killed 60
Palestinians near the Gaza-Israel border during demonstrations
against the opening of the U.S. embassy in
Jerusalem.            
    * European powers vowed to keep the 2015 nuclear deal alive
without the United States by trying to keep Iran's oil and
investment flowing, but admitted they would struggle to provide
the guarantees Tehran seeks.             
    * The London Bullion Market Association said on Tuesday it
had suspended the Ekaterinburg Non-Ferrous Metals Processing
Plant from its gold and silver good delivery lists due to
"ownership related issues".             
    
    DATA/EVENT AHEAD (GMT)

    0130  China           House prices                 Apr
    1230  U.S.            Housing starts               Apr
    1230  U.S.            Building permits             Apr
    1315  U.S.            Industrial production        Apr

 (Reporting by Apeksha Nair in Bengaluru; Editing by Sunil Nair)
  
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