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PRECIOUS-Gold rises as weak U.S. data fuels global slowdown worries

Published 10/03/2019, 09:42 AM
Updated 10/03/2019, 09:50 AM
© Reuters.  PRECIOUS-Gold rises as weak U.S. data fuels global slowdown worries
XAU/USD
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Oct 3 (Reuters) - Gold prices extended their gains on
Thursday as weaker-than-expected U.S. jobs data reinforced
global economic slowdown fears and raised expectations of
further monetary policy easing by the U.S. Federal Reserve.

FUNDAMENTALS
* Spot gold XAU= was up 0.1% at $1,500.59 per ounce at
0105 GMT. Prices rose 1.4% on Wednesday, the biggest one-day
percentage gain since Aug. 23.
* U.S. gold futures GCv1 were down 0.1% at $1,506.4 an
ounce.
* The dollar nursed losses amid signs of a slowdown in U.S.
economic growth and a deepening of global trade tensions. USD/
* Asian stocks tumbled on Thursday after New York markets
slumped overnight after the United States opened a new trade war
front by saying it will impose tariffs on $7.5 billion of goods
from the European Union. MKTS/GLOB
* The Trump administration put 25% tariffs on French wine,
Italian cheese and single-malt Scotch whisky in retaliation for
European Union subsidies on large aircraft. * The ADP National Employment Report on Wednesday showed
private payrolls growth in August was not as strong as
previously estimated, and said "businesses have turned more
cautious in their hiring," with small enterprises becoming
"especially hesitant." * New York Federal Reserve Bank President John Williams said
on Wednesday that while the U.S. economy looked to be in a
"favorable place" when viewed through the rearview mirror, the
outlook through the windshield ahead was "mixed." * Germany's leading economic institutes on Wednesday slashed
their growth forecasts for Europe's biggest economy for this
year and next, blaming weaker global demand for manufacturing
goods and increased business uncertainty linked to trade
disputes. * British Prime Minister Boris Johnson made a final Brexit
offer to the European Union on Wednesday, pitching a possible
compromise for a last-minute exit deal that was cautiously
welcomed by the EU though the two sides still remain far apart.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.32% to 923.76
tonnes on Wednesday from 920.83 tonnes on Tuesday.

DATA AHEAD (GMT)
0755 Germany Markit services PMI and Comp final PMI for Sept
0800 EU Markit PMI for Sept
1230 US Initial jobless claims for week of Sept 28
1345 US Markit PMI for Sept
1400 US Factory orders for August
1400 US ISM non-manufacturing PMI for Sept


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