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PRECIOUS-Gold hits 1-wk peak; global trade woes, lower U.S. yields support

Published 07/03/2019, 09:55 AM
Updated 07/03/2019, 10:00 AM
PRECIOUS-Gold hits 1-wk peak; global trade woes, lower U.S. yields support
XAU/USD
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GC
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GLD
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DXY
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July 3 (Reuters) - Gold prices climbed over 1% to hit a
one-week high on Wednesday, helped by a subdued dollar as
renewed concerns over global trade encouraged safe-haven demand
and drove down U.S. yields.


FUNDAMENTALS
* Spot gold XAU= rose 1.1% at $1,433.50 per ounce at 0144
GMT. Prices earlier touched $1,435.99, the highest since June
25.
* U.S. gold futures GCv1 were up 2.1% at $1,437.7 an
ounce.
* The dollar index .DXY , which measures the currency
against a basket of six rivals, was down 0.1%. USD/ US/N
* White House trade adviser Peter Navarro said on Tuesday
U.S. trade talks with China are heading in the right direction
and it will take time to get the right deal made. * The European Union said on Tuesday it was open to talks
with Washington in a dispute over aircraft subsidies while
preparing retaliation after U.S. added olives, Italian cheese
and Scotch whisky to a list of goods in line for hefty tariffs.
* Cleveland Fed President Loretta Mester on Tuesday
expressed skepticism that a U.S. interest rate cut is the right
move until there are more signs the economy is moving to a truly
weaker path. * U.S. interest rate futures extended their earlier gains on
Tuesday, as traders raised their bets the Federal Reserve would
lower borrowing costs by 50 basis points at end of July
following comments from Bank of England Governor Mark Carney.
* Carney said a global trade war and a no-deal Brexit were
growing risks to Britain's economy which might need more help to
cope with a downturn, prompting investors to increase their bets
on a BoE interest rate cut. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.22 percent to
798.44 tonnes on Tuesday from 800.20 tonnes on Monday.
* India's gold imports rose 12.6% in June from a year
earlier to $2.69 billion amid a jump in global prices to
six-year highs, a government source said on Tuesday.
DATA AHEAD (GMT)
* 0145 China Caixin Services PMI June
* 0800 EU Markit Serv Final PMI June
* 0800 EU Markit Comp Final PMI June
* 0830 UK Reserve Assets Total June
* 1230 US International Trade May
* 1230 US Initial Jobless Claims Weekly
* 1345 US Markit Svcs Final PMI June
* 1345 US Markit Comp Final PMI June
* 1400 US Factory Orders MM May
* 1400 US ISM M-Mfg PMI June

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