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REFILE-PRECIOUS-Gold prices stable; all eyes on Fed summit for rate-cut direction

Published 08/22/2019, 11:25 AM
REFILE-PRECIOUS-Gold prices stable; all eyes on Fed summit for rate-cut direction
XAU/USD
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GC
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GLD
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(Corrects to remove U.S. from first paragraph)
Aug 22 (Reuters) - Gold prices were steady on Thursday,
holding above the key $1,500 an ounce level, as investors
awaited a central bankers' conclave for clues on future interest
rate cuts.

FUNDAMENTALS
* Spot gold XAU= was flat at $1,501.73 per ounce by 0143
GMT.
* U.S. gold futures GCcv1 were down 0.3% at $1,511.50 an
ounce.
* Minutes of the Federal Reserve's July meeting, released on
Wednesday, showed policymakers were divided over whether to cut
interest rates, but were united in wanting to signal they were
not on a path to more easing. * Futures 0#FF: are still fully priced for a quarter-point
cut in rates next month, and over 100 basis points of easing by
the end of next year. FEDWATCH
* Focus has now shifted to the central bank's Jackson Hole
seminar later this week, where Fed Chairman Jerome Powell will
give a speech on Friday.
* Traders are also looking at the Group of Seven summit this
weekend for clues on what additional steps policymakers may take
to boost economic growth.
* Hopes for U.S. fiscal stimulus also got a knock when
President Donald Trump reversed course and said he was not
looking at cutting payroll taxes. * A range of manufacturing surveys from across the globe are
due later on Thursday and risks are they will show a further
slowdown in activity, especially in Europe. MKTS/GLOB
* Minutes from the European Central Bank's last policy
meeting are also awaited and markets are looking for more
details on exactly when and how aggressively it might ease
policy. ECB
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.80% to 851.91
tonnes on Wednesday. GOL/ETF
* The holdings have increased about 3%, or around 24 tonnes,
so far this month.

DATA AHEAD (GMT)
* 0715 France Markit Mfg, Serv, Comp Flash PMIs Aug
* 0730 Germany Markit Mfg, Serv, Comp Flash PMIs Aug
* 0800 EU Markit Mfg, Serv, Comp Flash PMIs Aug
* 1230 US Initial Jobless Claims Weekly
* 1345 US Markit Mfg, Serv, Comp Flash PMIs Aug
* 1400 EU Consumer Confid. Flash Aug


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