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PRECIOUS-Gold gains on weaker dollar, U.S.-China trade tension

Published 08/05/2019, 09:44 AM
Updated 08/05/2019, 09:50 AM
PRECIOUS-Gold gains on weaker dollar, U.S.-China trade tension
XAU/USD
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GC
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GLD
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DXY
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Aug 5 (Reuters) - Gold prices edged higher on Monday, helped
by a weaker dollar and escalating trade tension between the
United States and China.

* Spot gold XAU= rose 0.2% to $1,443.56 per ounce as of
0107 GMT.
* U.S. gold futures GCcv1 inched down 0.1% to $1,455.40 an
ounce.
* Expectations of further monetary policy easing sent the
dollar skidding. The dollar index .DXY against a basket of six
major rivals touched a one-week low on Monday. USD/
* On Friday, China said it will fight back against U.S.
President Donald Trump's decision to impose an additional 10%
tariff on $300 billion worth of Chinese imports. * The tariffs may also force the Federal Reserve to again
cut interest rates to protect the U.S. economy from trade-policy
risks, experts said. * Providing a further push for a second rate cut next month,
U.S. July jobs data on Friday showed a slowdown in hiring and
fewer hours for manufacturing workers. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.36% to 830.76
tonnes on Friday from 827.82 tonnes on Thursday. GOL/ETF
* Asian shares extended their losses on Monday as a sharp
escalation in the Sino-U.S. trade war kept financial markets on
edge. MKTS/GLOB
* Hedge funds and money managers raised their bullish stance
in COMEX gold and silver contracts in the week to July 30, the
U.S. Commodity Futures Trading Commission (CFTC) said on Friday.
* Physical gold demand last week was mixed in Asian hubs as
consumers cashed in on brief price rallies while global
uncertainties prompted some safe-haven demand. GOL/AS

DATA AHEAD(GMT)
* 0145 China Caixin Services PMI July
* 0800 EU Markit Services, Comp Final PMI July
* 0830 UK Reserve Assets Total July
* 1345 US Markit Services, Comp Final PMI July


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