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PRECIOUS-Gold firms as markets await clarity on trade talks

Published 11/06/2019, 09:58 AM
Updated 11/06/2019, 10:00 AM
PRECIOUS-Gold firms as markets await clarity on trade talks
XAU/USD
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GC
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GLD
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Nov 6 (Reuters) - Gold prices inched up on Wednesday, after
slipping more than 1% in the previous session, as investors
awaited further clarity on the U.S.-China trade talks.

FUNDAMENTALS
* Spot gold XAU= was up 0.2% to $1,486.53 per ounce at
0121 GMT, having dipped 1.7% on Tuesday. This was the biggest
one-day percentage drop since late-September.
*U.S. gold futures GCv1 were 0.3% higher at $1,488 per
ounce.
* Asian shares were little changed as investors awaited new
developments toward scaling back a bruising trade war between
the United States and China. MKTS/GLOB
* Treasury yields fell slightly in Asia and crude oil
futures also dipped as some investors started to temper their
optimism about progress in the trade dispute in the absence of
concrete progress in negotiations between the world's
two-largest economies.
* Washington and Beijing are working to narrow their
differences enough to sign a "phase one" trade deal as early as
this month, but suggestions for a signing venue range from
Alaska to Greece. * The dollar held the upper hand against a basket of major
currencies on Wednesday, on rising hopes for a trade deal and a
string of solid U.S. economic data.
* A stronger dollar makes gold expensive for buyers holding
other currencies.
* Meanwhile, U.S. ISM non-manufacturing data for October
came in better-than-expected easing some fears of recession.
* Minneapolis Federal Reserve Bank President Neel Kashkari
on Tuesday said he believes U.S. monetary policy is now
"modestly accommodative," a view that puts him on the same page
as most of his colleagues at the U.S. central bank. * The Fed last week cut its target for the overnight
bank-to-bank lending rate for the third time this year, to a
range of 1.5%-1.75%.
* British Prime Minister Boris Johnson will formally
announce a Dec. 12 election on Wednesday, urging voters to back
him and promising to "get Brexit done in the next few weeks".
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.13% to 915.85
tonnes on Tuesday from 914.67 tonnes on Monday. GOL/ETF

DATA/EVENTS
0700 Germany Industrial Orders MM Sept
0850 France Markit Serv, Comp PMIs Oct
0855 Germany Markit Serv PMI, Comp Final PMI Oct
0900 EU Markit Serv PMI, Comp Final PMIs Oct

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