May 21, 2018 / 1:22 AM / 5 months ago

PRECIOUS-Gold slips as U.S-China trade war put 'on hold'

    BENGALURU, May 21 (Reuters) - Gold prices edged down on
Monday as the dollar rose and demand for safe-haven assets eased
after U.S. Treasury Secretary Steven Mnuchin said the U.S. trade
war with China was "on hold".
        
    FUNDAMENTALS  
    * Spot gold        was down 0.2 percent at $1,289.30 per
ounce at 0059 GMT.
    * U.S. gold futures         for June delivery were
0.2-percent lower at $1,289.20 per ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, hit a five-month high
of 93.860 early Monday.
    * U.S. stock futures jumped on Monday as Mnuchin said the
U.S. trade war with China was "on hold" after the world's two
largest economic powers agreed to drop their tariff threats
while they work on a wider trade agreement.              
    * Mnuchin and U.S. President Donald Trump's top economic
adviser, Larry Kudlow, said the agreement reached by Chinese and
American negotiators on Saturday set up a framework for
addressing trade imbalances in the future.             
    * Italy's two anti-establishment parties promised on Friday
to ramp up spending in a programme for a new coalition
government, putting them on a collision course with the European
Union despite having dropped some of their most radical
proposals.             
    * The EU is not doing enough to preserve the benefits for
Iran from the 2015 international nuclear pact following the
withdrawal of the United States, Iran's foreign minister told
the EU's energy chief on Sunday.             
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.10 percent to
855.28 tonnes on Friday from 856.17 tonnes on Thursday.
            
    * Hedge funds and money managers cut their net long position
in COMEX gold contracts in the week to May 15, U.S. Commodity
Futures Trading Commission (CFTC) data showed on Friday.
            
    * Gold discounts in India widened to the highest level in
nearly two months this week due to sluggish demand amid high
local rates, while buying in other major Asian centres ticked up
as global prices slid to 2018 lows.             
    
    DATA/EVENT AHEAD (GMT)
    
      1230  U.S.        National activity index          Apr
 

 (Reporting by Apeksha Nair in Bengaluru
Editing by Joseph Radford)
  
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