April 6, 2018 / 10:05 AM / 5 months ago

PRECIOUS-Gold rises as dollar, equities fall on trade fears, U.S. data

    * Wall Street dives on trade war fears, drags dollar
    * U.S. economy adds fewest jobs in 6 months
    * GRAPHIC-2018 asset returns: tmsnrt.rs/2jvdmXl

 (New throughout, udpates prices, market activity and comments,
adds second byline and NEW YORK dateline)
    By Renita D. Young and Jan Harvey
    NEW YORK/LONDON, April 6 (Reuters) - Gold prices rose on
Friday, as Wall Street stocks tumbled and the dollar fell as
rhetoric from U.S. President Donald Trump and Chinese officials
fed worries about a possible trade war, and after U.S. jobs data
came in weaker than expected.
    U.S. stocks fell, with the Dow down more than 450 points,
after Trump on Thursday threatened to slap $100 billion more in
tariffs on Chinese imports, and Beijing pledged a "fierce
counter strike".                  
    Falling stock prices dragged the dollar against the yen and
the euro. Also pressuring the U.S. currency was data showing the
 U.S. economy in March created the fewest jobs in six months,
which might prompt the Federal Reserve to go more slowly on
plans to raise interest rates.                    
    Spot gold        was up 0.5 percent at $1,332.11 an ounce by
2:01 p.m. EDT (1801 GMT). In early trade, it fell to a session
low of $1,321.16, the lowest since March 21. U.S. gold futures
        for June delivery settled up 0.6 percent at $1,336.10.
    Spot prices are up 0.6 percent since last Friday, but well
off this week's highs. Gold has fluctuated as investors rated
prospects of a U.S.-China trade war.             
    "We are moving back to a risk-off scenario today, but still
stuck in a trading range between $1,300 and $1,360," said Rob
Haworth, senior investment strategist for U.S. Bank Wealth
Management. 
    "The market is paying very much attention to the dollar and
bond market in terms of what the Fed is going to do."
    "The payrolls report has provided a small boost to gold, but
overall it's had quite a dismal week," Saxo Bank's head of
commodity strategy Ole Hansen said. 
    Silver        was down 0.1 percent at $16.33 an ounce, but
on track to close up 0.2 percent for the week.
     Platinum        was up 0.3 percent at $913 an ounce, but
down 1.6 percent for the week so far.
    Palladium        fell for the 11th straight session and was
down 0.4 percent at $901.30 an ounce, after falling to $895.47,
the lowest since August 2017. It was on track to end the week
down 5.3 percent.
    "Last year's uptrend has reversed and palladium prices are
down more than 20 percent from their January high," Julius Baer
said in a note. "We see them better aligned with a softer global
car market and shift our view to neutral."

 (Additional reporting by Marcy Nicholson in New York and Swati
Verma in Bengaluru
Editing by David Gregorio and David Holmes and Adrian Croft)
  
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