July 25, 2018 / 4:02 AM / 5 months ago

PRECIOUS-Gold prices edge up ahead of U.S.-EU trade talks

    * Spot gold remains neutral in $1,214-$1,237/oz range -
technicals
    * U.S. economic growth data due on Friday

 (Adds comment and updates prices)
    By Karen Rodrigues
    BENGALURU, July 25 (Reuters) - Gold prices inched higher on
Wednesday as the dollar held steady ahead of a meeting between
the U.S. and European Commission presidents to discuss
trade-related issues.
    Spot gold        was up 0.2 percent at $1,226.19 an ounce at
0719 GMT.
    U.S. gold futures         for August delivery were 0.1
percent higher at $1,226.20 an ounce.    
    "Gold prices have edged up as market sentiments eased off
gently on robust dollar prospects ... prices look likely to
trade within a tight range for now as market forces discern the
next move," said Benjamin Lu, a commodities analyst at
Singapore-based broker Phillip Futures.
    The dollar and euro were little changed on Wednesday, ahead
of the meeting between U.S. President Donald Trump and European
Commission President Jean-Claude Juncker.             
            
    The meeting comes after the United States imposed tariffs on
EU steel and aluminium in June and Trump threatened to extend
those measures to European cars and car parts.             
    Meanwhile, investors are also awaiting the second-quarter
U.S. economic growth data which is due on Friday, where they
expect growth to top current forecasts of 4.1 percent.
    INTL FCStone analyst Edward Meir said he still remains
"somewhat cautious" on the precious metals group.
    In addition to poor-looking technicals, the market is
vulnerable to the dollar resuming its upswing, anything north of
4.2 percent in Friday's GDP figures could lead to yet another
push-up in the greenback and pressure gold lower, Meir said in a
note. 
    A now-robust U.S. economy will soon lose momentum on rising
interest rates and escalating trade disputes, according to
economists polled by Reuters, who nonetheless gave just a
one-in-three chance of a recession over the next two years.
            
    Spot gold remains neutral in a range of $1,214-$1,237 per
ounce, Reuters technical analyst Wang Tao said.         
    Among other precious metals, silver        was up 0.1
percent at $15.46 an ounce and palladium        rose 0.4 percent
to $918.17 an ounce.
    Both the metals touched a one-week high on Tuesday.
    Platinum        was 0.5 percent higher at $832.65 per ounce.
It hit a two-week high at $845.90 in the previous session. 

 (Reporting by Karen Rodrigues in Bengaluru; Editing by
Subhranshu Sahu and Vyas Mohan)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below