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PRECIOUS-Gold prices steady, buoyed by worries over Sino-U.S. trade tensions

Published 05/23/2019, 09:36 AM
Updated 05/23/2019, 09:40 AM
PRECIOUS-Gold prices steady, buoyed by worries over Sino-U.S. trade tensions
XAU/USD
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GC
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GLD
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May 23 (Reuters) - Gold prices steadied on Thursday just
above a two-week low touched this week, buoyed by worries the
Sino-U.S. trade conflict could expand into a technology cold war
between the world's two largest economies.

FUNDAMENTALS
* Spot gold XAU= was broadly unchanged at $1,273.84 per
ounce as of 0112 GMT, just above a more than two-week low of
$1,268.97 touched on Tuesday.
* U.S. gold futures GCcv1 eased 0.1% to $1,273.30 an
ounce.
* The U.S. administration is considering Huawei-like
sanctions on Chinese video surveillance firm Hikvision over the
country's treatment of its Uighur Muslim minority, a person
briefed on the matter said on Wednesday, the latest effort by
the Trump administration to crack down on Chinese companies as
trade friction between the world's top two economies escalates.
* Bullion is often seen as a safe-haven investment in times
of political or economic uncertainty.
* Asian shares were stuck in the red on Thursday amid the
concerns over U.S.-China trade. MKTS/GLOB
* Japanese manufacturing activity swung back into
contraction in May as export orders fell at the fastest pace in
four months, highlighting why policymakers and investors remain
anxious about the growing economic impact of the bruising
Sino-U.S. trade war. * The United States is at least a month from enacting its
proposed tariffs on $300 billion in Chinese imports as it
studies the impact on American consumers, U.S. Treasury
Secretary Steven Mnuchin said on Wednesday. * The yen advanced against its peers as the persistent
U.S.-China trade fears and Brexit concerns fanned risk aversion,
lifting the safe-haven Japanese currency. FRX/
* Prominent Brexit supporter Andrea Leadsom resigned from
Prime Minister Theresa May's government on Wednesday, piling
pressure on the British leader after a new Brexit gambit
backfired and fuelled calls for her to quit. * U.S. Federal Reserve officials at their last meeting
agreed that their current patient approach to setting monetary
policy could remain in place "for some time", a further sign
policymakers see little need to change rates in either
direction. * That came as many investors had priced in a rate cut by
the end of this year, analysts said.
* SPDR Gold Trust GLD , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.12% to 738.81
tonnes on Wednesday from 739.69 tonnes on Tuesday. GOL/ETF

DATA AHEAD (GMT)
* 0600 Germany GDP Detailed QQ SA Q1
* 0600 Germany GDP Detailed YY NSA Q1
* 0645 France Business Climate Mfg May
* 0715 France Markit Mfg Flash PMI May
* 0730 Germany Markit Mfg Flash PMI May
* 0800 Germany Ifo Business Climate New May
* 0800 EU Markit Mfg Flash PMI May
* 0800 EU Markit Serv Flash PMI May
* 0800 EU Markit Comp Flash PMI May
* 1230 U.S. Initial Jobless Claims Weekly
* 1400 U.S. New Home Sales Units April

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