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PRECIOUS-Gold holds near six-year high on economic gloom

Published 08/28/2019, 09:40 AM
Updated 08/28/2019, 09:50 AM
PRECIOUS-Gold holds near six-year high on economic gloom
XAU/USD
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XAG/USD
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GC
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SI
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GLD
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US2YT=X
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US10YT=X
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DXY
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Aug 28 (Reuters) - Gold prices held steady on Wednesday,
trading close to a more than six-year high on fears of an
economic slowdown amid a protracted Sino-U.S. trade conflict,
boosting appetite for the safe-haven metal.

FUNDAMENTALS
* Spot gold XAU= was steady at $1,542.90 per ounce, as of
0100 GMT.
* Gold prices jumped 1% on Tuesday, and traded close to
Monday's high of $1,554.56, last reached in April 2013.
* U.S. gold futures GCcv1 inched up 0.1% to $1,553.30 an
ounce.
* The yield curve inversion on benchmark U.S. 10-year
Treasuries US10YT=RR compared with the two-year yield
US2YT=RR was at its deepest since May 2007, when the U.S.
subprime financial crisis started to unfold. US/
* The U.S. yield curve inversion, a portent for several past
U.S. recessions, sent Wall Street stocks tumbling down on
Tuesday. MKTS/GLOB
* Investors are also focused on Sept. 1, when the first
stage of U.S. tariffs on $300 billion worth of Chinese goods is
scheduled to go into effect. In response, China has unveiled
tariffs on U.S. products set to go into effect the same day.
* On Tuesday, data showed that U.S. consumer confidence
USCONC=ECI inched down in August, and growth in home prices
hit its slowest pace in nearly seven years. * SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 1.6% to 873.32
tonnes on Tuesday from Monday. GOL/ETF
* The dollar index against a basket of six major currencies
.DXY stood little changed after dipping 0.1% overnight. USD/
* Markets are fully priced in for a quarter-point cut in
interest rates by the U.S. Fed next month, and over 100 basis
points of easing by the end of next year. FEDWATCH
* Spot silver XAG= touched a high of $18.29 an ounce, its
highest since April 2017.

DATA AHEAD (GMT)
0600 Germany GfK Consumer Sentiment Sept
0600 Germany Import Prices MM, YY July
0800 Italy Consumer Confidence Aug
0800 Euro Zone Money-M3 Annual growth July


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