July 4, 2018 / 1:35 AM / 2 months ago

PRECIOUS-Gold prices rebound to one-week high amid trade tensions

    BENGALURU, July 4 (Reuters) - Gold prices rose to a one-week
high early on Wednesday, rebounding from a seven-month low
touched in the previous session, as the dollar weakened against
the yen and an end-of-week deadline loomed for U.S. tariffs on
Chinese imports. 
    
    FUNDAMENTALS  
    * Spot gold        was up 0.4 percent at $1,257.51 an ounce
as of 0058 GMT. It touched a one-week high of $1,257.63 earlier
in the session. The metal fell to $1,237.32, its lowest since
Dec. 12, in the previous session. 
    * U.S. gold futures         were 0.4 percent higher at
$1,258.70 an ounce.
    * The dollar was down 0.2 percent against the yen at 110.3
      .       
    * China is putting pressure on the European Union to issue a
strong joint statement against President Donald Trump's trade
policies at a summit later this month but is facing resistance,
European officials said.             
    * China's leaders are confident the country can cope with
major and external risks, they said at a high-level internal
financial meeting, amid financial turbulence at home and rising
trade tensions with the United States.             
    * China's central bank moved to calm jittery financial
markets on Tuesday after the yuan dropped through the
psychologically significant 6.7 to the dollar mark, hitting its
lowest in almost a year as anxieties over U.S. trade frictions
deepened.             
    * U.S. Secretary of State Mike Pompeo will visit Mexico on
July 13 to meet President-elect Andres Manuel Lopez Obrador and
discuss immigration, trade, security and development, the U.S.
and Mexican governments said on Tuesday.             
    * New orders for U.S.-made goods unexpectedly rose in May,
pointing to a strengthening manufacturing sector, but business
spending on equipment appeared to have slowed further in the
second quarter.             
    * The Bank of Japan is likely to cut its price growth
forecasts at a policy meeting later this month as long-term
inflation expectations stall, sources said, highlighting the
bank's difficulty in hitting its elusive price target.
            
    * The European Central Bank's chief economist said on
Tuesday he was confident inflation in the euro zone would
continue accelerating towards the ECB's target of just under 2
percent even after the end of its massive bond purchases.
            
    * Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund fell 0.73 percent to 803.42
tonnes on Tuesday.          
    
    DATA AHEAD (GMT)
    
    0145  China        Caixin services PMI    June
    0750  France       Markit services PMI    June
    0755  Germany      Markit services PMI    June
    0800  Euro zone    Markit services PMI    June
    
    U.S. markets closed for Independence Day holiday
    

 (Reporting by Karen Rodrigues in Bengaluru; Editing by Amrutha
Gayathri)
  
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