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PRECIOUS-Gold off six-year peak as dollar rises after Fed comments

Published 06/26/2019, 09:38 AM
Updated 06/26/2019, 09:40 AM
PRECIOUS-Gold off six-year peak as dollar rises after Fed comments
XAU/USD
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June 26 (Reuters) - Gold prices slipped on Wednesday, moving
further away from a six-year peak hit in the previous session,
as the dollar gained after Federal Reserve officials played down
expectations of aggressive monetary easing.

FUNDAMENTALS
* Spot gold XAU= was down 0.6% at $1,415.01 per ounce as
of 0122 GMT, after hitting its highest since May, 2013 at
$1,438.63 in the previous session.
* U.S. gold futures GCv1 were steady at $1,418.50 an
ounce.
* Fed Chair Jerome Powell on Tuesday said the central bank
is "insulated from short-term political pressures," pushing back
against U.S. President Donald Trump's demand for a significant
rate cut.
* Powell, however, said Fed policymakers are wrestling with
whether uncertainties around U.S. tariffs, Washington's conflict
with trading partners and tame inflation require a rate cut.
* Separately, St. Louis Fed President James Bullard told
Bloomberg Television he does not think the U.S. economy is dire
enough to warrant a 50-basis-point cut in July. * Trump said on Twitter on Monday that the Fed "doesn't know
what it is doing," adding that it "raised rates far too fast"
and "blew it" given low inflation and slowing global growth.
* The dollar index .DXY against a basket of six major
currencies gained 0.2 pct on Wednesday after touching a three
month low in the previous session. USD/
* The United States hopes to re-launch trade talks with
China after President Donald Trump and President Xi Jinping meet
in Japan on Saturday, but Washington will not accept any
conditions around the U.S. use of tariffs in the dispute, a
senior administration official said on Tuesday. * Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.3% to 799.61 tonnes on
Tuesday from 801.96 tonnes on Monday. GOL/ETF
* China's net gold imports via main conduit Hong Kong in May
slumped over 50% from the previous month, to the lowest level
since Dec. 2018, Hong Kong government data showed on Tuesday.
* Russia, one of the world's largest gold producers, is
considering a bill to cancel value-added tax (VAT) on gold
investments, a project its officials have been considering for
years, starting from 2020. DATA AHEAD (GMT)

* 0645 France Consumer Confidence July
* 1230 US Durable Goods May

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