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PRECIOUS-Gold slips as renewed trade optimism lifts risk appetite

Published 10/14/2019, 09:10 AM
Updated 10/14/2019, 09:20 AM
© Reuters. PRECIOUS-Gold slips as renewed trade optimism lifts risk appetite
USD/JPY
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XAU/USD
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GC
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MIAPJ0000PUS
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DXY
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Oct 14 (Reuters) - Gold prices eased on Monday, extending
falls into a third session, as news that the United States and
China had made progress in their recent high-level trade talks
lifted risk appetite.

FUNDAMENTALS
* Spot gold XAU= dropped by 0.3% to $1,485.56 per ounce,
as of 0036 GMT. U.S. gold futures GCcv1 edged 0.1% higher to
$1,489.90.
* Spot gold prices fell more than 1% in intraday trade on
Friday on news that the United States and China were likely to
reach a partial agreement on trade.
* U.S. President Donald Trump on Friday outlined the first
phase of a deal and suspended a threatened tariff hike, but
officials on both sides said much more work needed to be done
before an accord could be agreed. * The possible deal, covering agriculture, currency and some
aspects of intellectual property protections, would represent
the biggest step by the two countries in 15 months. MKTS/GLOB
* This renewed appetite for riskier assets, with MSCI's
broadest index of Asia-Pacific shares ex-Japan .MIAPJ0000PUS
up 0.5%.
* The dollar .DXY climbed higher from a three-week low hit
in the previous session, and traded near multi-month highs
versus the yen JPY= , also considered a safe-haven asset.
USD/
* The coming days will be crucial for Britain, as it
prepares for its departure from the European Union on Oct. 31,
with both parties claiming a lot more work would be needed to
secure an agreement. * Britain said there would be more talks later on Monday,
with Prime Minister Boris Johnson hoping a deal will be agreed
in time for EU leaders to approve it at a summit in Brussels on
Thursday and Friday.
* Markets also look for signs the U.S. Federal Reserve will
cut interest rates at its next meeting later in the month.

DATA/EVENTS AHEAD (GMT)

0630 India WPI Inflation YY INWPI=ECI Sept
N/A China Exports YY CNEXP=ECI Sept
N/A China Imports YY CNIMP=ECI Sept
N/A China Trade Balance USD CNTRD=ECI Sept


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