July 4 (Reuters) - Gold prices were steady on Thursday after
hitting a one-week high in the previous session, as gains in
stock markets offset support from a weaker dollar and prospects
of an interest rate cut by the U.S. Federal Reserve.
FUNDAMENTALS
* Spot gold XAU= was broadly unchanged at $1,418.60 per
ounce at 0119 GMT. Prices touched $1,435.99 on Wednesday, the
highest since June 25.
* U.S. gold futures GCv1 were up 0.1% at $1,421.7 an
ounce.
* The dollar was trading near a one-week low versus the yen
as falling Treasury yields fuelled expectations of Fed cutting
interest rates at its July 30-31 meeting. Meanwhile, Asian
stocks advanced tracking sharp gains on Wall Street. USD/
US/N MKTS/GLOB
* The U.S. trade deficit jumped in May and trade tensions
between the U.S. and China helped drive activity in the services
sector to a two-year low in June, further signs that economic
growth slowed sharply in the second quarter. * Euro zone business activity picked up slightly last month
but remained weak as a modest but broad-based upturn in the
services industry offset a continued deep downturn in factory
output, a survey showed. * The U.S. economy is expanding at a 1.3% annualized rate in
the second quarter based on the latest figures on trade balance
and factory orders, the Atlanta Federal Reserve's GDPNow
forecast model showed on Wednesday. * Top representatives from the U.S. and China are arranging
to resume talks next week to try to resolve a year-long trade
war between the world's two largest economies, Trump
administration officials said on Wednesday. * President Donald Trump warned Iran on Wednesday against
making threats that can "come back to bite you like nobody has
been bitten before," after Tehran announced it would breach a
2015 nuclear deal. * European Union governments' surprise nominee for president
of their executive, Germany's Ursula von der Leyen, sought
support in the bloc's parliament on Wednesday, hoping to secure
the confirmation she will need in two weeks' time. * The Bank of Japan does not need to ramp up monetary
stimulus for now as a moderate recovery is expected later in the
year, board member Yukitoshi Funo said on Wednesday.
* Russia's central bank has been buying gold on the domestic
market at less than the industry benchmark to encourage Russian
producers to export more of the metal, the governor told
Reuters. * Weakening global economic growth, lacklustre demand and
huge stockpiles mean silver prices are unlikely to join gold in
rocketing to new highs, analysts say. * U.S. markets will remain shut on Thursday for Independence
Day holiday.
DATA AHEAD (GMT)
* 0900 EU Retails Sales MM YY May