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PRECIOUS-Gold edges lower as dollar strengthens ahead of trade talks

Published 10/08/2019, 09:13 AM
Updated 10/08/2019, 09:20 AM
© Reuters.  PRECIOUS-Gold edges lower as dollar strengthens ahead of trade talks
XAU/USD
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GC
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MIAPJ0000PUS
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DXY
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Oct 8 (Reuters) - Gold prices slipped for a third straight
session on Tuesday, pressured by a stronger dollar and an uptick
in equities ahead of upcoming U.S.-China trade talks in
Washington.

FUNDAMENTALS
* Spot gold XAU= was down 0.2% to $1,489.80 per ounce, as
of 0047 GMT. U.S. gold futures GCcv1 dropped 0.6% to
$1,495.20.
* MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS inched up 0.13% and the U.S. dollar .DXY
against a basket of currencies firmed around 98.98. USD/
MKTS/GLOB
* The dollar strengthened after a Fox Business reporter
tweeted that the Chinese Commerce Ministry said that China is
ready to do a deal with the United States on parts of
negotiations both sides agree upon. * Top-level U.S.-China trade talks are scheduled to resume
later in the week, when Chinese Vice Premier Liu He meets with
U.S. Trade Representative Robert Lighthizer and Treasury
Secretary Steven Mnuchin in Washington. * The talks are getting underway ahead of a scheduled
increase in U.S. tariffs on $250 billion worth of Chinese goods,
to 30% from 25% on Oct. 15.
* Spending on retail goods and dining during China's week
long National Day holidays returned to growth this year,
offering unexpected respite to an economy that has been
expanding at its weakest pace in almost three decades.
* Investors awaited the U.S. Federal Open Market Committee's
minutes from its September meeting, due on Wednesday, for clues
to whether the Fed will cut rates at its October meeting, in
what would be its third interest rate cut for the year.
* Uncertainties on the U.S. political front kept gold
supported after Congressional Democrats issued subpoenas to the
Pentagon and the White House budget office on Monday as part of
their impeachment inquiry, seeking documents related to U.S.
President Donald Trump's decision to withhold military
assistance from Ukraine. DATA/EVENTS AHEAD (GMT)
0145 China Caixin Services PMI Sept
0600 Germany Industrial Output MM Aug
1750 US Federal Reserve Chairman Jerome Powell speaks
on "A View From the Federal Reserve"

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