February 9, 2018 / 1:30 AM / 16 days ago

PRECIOUS-Gold up on safe-haven buying as equities drop

    Feb 9 (Reuters) - Gold prices edged up on Friday, recovering
from more than one-month lows as tumbling equities markets
pushed investors into safe-haven assets, but a firmer dollar and
worries about rising global interest rates kept gains in check.
    
    FUNDAMENTALS  
    * Spot gold        was up 0.1 percent at $1,320.72 an ounce,
as of 0038 GMT. Prices touched their lowest since Jan. 4 at
$1,306.81 on Thursday.
    * Spot gold was down 1 percent for the week and heading for
its second straight weekly loss.
    * U.S. gold futures         were up 0.3 percent at $1,322.60
per ounce.
    * Asian stocks tumbled on Friday after Wall Street shares
suffered yet another big slide amid worries over rising bond
yields, while perceived havens such as the yen and Swiss franc
drew demand amid the turmoil.            
    * While a strengthening U.S. dollar weighed on gold during
the recent global stock market sell-off, more investors decided
to buy bullion later, when prices touched technical support
around $1,312 an ounce, said Michael Matousek, head trader at
U.S. Global Investors.
    * The Bank of England said on Thursday it was likely to
raise interest rates sooner and by more than it thought only
three months ago, because Britain's slow-moving economy is
getting a boost from the global recovery.             
    * The benchmark 10-year Treasury note yield             rose
as high as 2.884 percent on Thursday after the Bank of England
signaled more aggressive rate hikes, just below Monday's
four-year high of 2.885 percent. It last stood at 2.8385
percent. 
    * Analysts polled by Reuters said they did not expect the
dollar to rebound this year, despite expectations of at least
three rate rises.             
    * The dollar index       , which measures the greenback
against a basket of currencies, was firm at 90.272.
    * Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.07 percent to 826.31
tonnes on Thursday from Wednesday.          
    * Randgold Resources could lose $10 million per year if a
proposed change to the Democratic Republic of Congo is signed
into law, Chief Executive Mark Bristow said.             
    * Dramatic political changes in southern Africa have
transformed the investment mood for the better in the space of a
year.             
    * Executives from around the world are meeting in Cape Town
this week for Mining Indaba 2018, an the annual industry
conference which brings together more than 2,000 companies.
            
    * The jewellery industry's standards watchdog, the
Responsible Jewellery Council (RJC), is failing to ensure gold
and diamonds are responsibly sourced by its members, a campaign
group said in a report on Thursday.             
     
    DATA AHEAD (GMT)
    
    0130  China      Consumer prices             Jan
    0130  China      Producer prices             Jan
    0745  France     Industrial output           Dec
    1500  U.S.       Wholesale sales             Dec

 (Reporting by Nallur Sethuraman in Bengaluru; editing by
Richard Pullin)
  
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