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PRECIOUS-Gold gains as weak economic data hints at global slowdown

Published 07/02/2019, 09:40 AM
© Reuters.  PRECIOUS-Gold gains as weak economic data hints at global slowdown
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July 1 (Reuters) - Gold prices rose on Tuesday buoyed by a
safe-haven sentiment emanating from weak global manufacturing
data that hinted at an economic slowdown, a day after the metal
declined more than 1% on expectations of a U.S.-China trade
truce.

FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $1,389.49 per ounce at
0111 GMT.
* Prices fell about 1.8% on Monday, its biggest one-day
percentage decline since November 2016. They had touched a more
than one-week low of $1,381.51 per ounce.
* U.S. gold futures GCv1 were up 0.2% at $1,391.70 an
ounce.
* Factory activity shrank across much of Europe and Asia in
June while growth in manufacturing cooled in the United States,
keeping the world's policymakers under pressure to avert a
recession amid a U.S.-China trade war. * U.S. manufacturing activity slowed to near a three-year
low in June, with a measure of new orders received by factories
tumbling, amid growing anxiety over an escalation in trade
tensions between the United States and China. * Britain's economy has lost momentum and might have shrunk
in the second quarter of 2019, according to data that showed the
double impact of Brexit and the slowdown in the global economy.
* Euro zone inflation remains unacceptably low and the
European Central Bank will ease policy further if necessary to
boost price pressures, policymakers said on Monday, just weeks
after ECB chief Mario Draghi hinted at more stimulus.
* President Donald Trump said on Monday that trade talks
with China were under way and any deal would need to be somewhat
tilted in favor of the United States. * Hong Kong police fired tear gas early on Tuesday to
disperse hundreds of defiant protesters, some of whom had
stormed and ransacked the city's legislature hours earlier on
the anniversary of the city's 1997 return to Chinese rule.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.78 percent to
800.20 tonnes on Monday from 794.04 tonnes on Friday.
* Barrick Gold Corp ABX.TO said on Monday its Nevada joint
venture with Newmont Goldcorp NEM.N is expected to produce 1.8
million ounces to 1.9 million ounces of gold in the second half
of 2019. DATA AHEAD (GMT)
* 0430 Australia RBA Cash Rate July
* 0600 UK Nationwide House Price MM YY June
* 1200 Brazil Industrial Output MM YY May

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