Quantcast

PRECIOUS-Gold inches down as trade worries boost dollar


Shutterstock photo


Feb 12 (Reuters) - Gold prices eased on Tuesday as investorssought safety in the dollar from a long-drawn U.S.-China tradewar and its impact on the global economic growth.

FUNDAMENTALS

* U.S. gold futures GCv1 fell 0.1 percent to $1,310.20 perounce.

* Investors are now focussed on the new round of trade talksbetween China and the United States that started in Beijing onMonday. urn:newsml:reuters.com:*:nL3N20614C

* These talks come as the world's two largest economies tryto hammer out a deal before a March 1 deadline, after which U.S.tariffs on $200 billion worth of Chinese imports are scheduledto increase to 25 percent from 10 percent.

* Sino-U.S. trade tensions have rattled financial marketssince last year and also boosted the appeal of the U.S. dollaras a safe-haven.

* The dollar index .DXY was steady at 97.08, afteradvancing 0.4 percent in the previous session in its largestpercentage gain since Jan. 24. USD/

* A stronger greenback makes dollar-denominated gold moreexpensive for holders of other currencies.

* Meanwhile, top four Democratic and Republicancongressional negotiators on border security funding resumedtalks on Monday, with the possibility of another partial U.S.government shutdown looming if they fail to reach a deal by aFriday deadline. urn:newsml:reuters.com:*:nL1N2060IA

* The British parliament is set to hold a debate on Brexiton Feb. 14 where Prime Minister Theresa May is seeking changesto her deal with Brussels after it was rejected by a recordmajority in parliament last month. urn:newsml:reuters.com:*:nL5N205079urn:newsml:reuters.com:*:nL5N2064KF

* Italy's ruling League party has drafted a law proposalwhich would eventually allow the government to sell thecountry's gold reserves through a change to the constitution. urn:newsml:reuters.com:*:nR1N1XV00K

* Russia's central bank will pay less than an industrybenchmark for gold that it buys on the domestic market, it saidon Monday. urn:newsml:reuters.com:*:nL5N2065Y5

* Kazakhstan raised its gold holdings by 2.81 tonnes inJanuary, according to International Monetary Fund data. urn:newsml:reuters.com:*:nEON1UDXTM

* China's gold reserves were at 59.94 million fine troyounce at end-January versus 59.56 million troy ounce atend-December, according to central bank data. urn:newsml:reuters.com:*:nB9N1ZF023

* Venezuela's most successful financial operations in recentyears have not taken place on Wall Street, but in primitivegold-mining camps in the nation's southern reaches. urn:newsml:reuters.com:*:nL1N20506E

* Russia's largest gold producer, Polyus PLZL.MM , onMonday reported a 20 percent jump in fourth-quarter adjusted netprofit to $291 million compared with last year, lifted byincreased production and rising sales of the metal. urn:newsml:reuters.com:*:nL5N206154

* If the adage "follow the money" is to be applied tocommodities, then currently the place looking most attractive toinvestors is gold mining. urn:newsml:reuters.com:*:nL3N2060R8 (Reporting by Nallur Sethuraman in Bengaluru; Editing bySubhranshu Sahu) ((Sethuraman.NR@thomsonreuters.com; (Within U.S.1-651-848-5832, Outside U.S. +91 8067496031); Reuters Messaging:nallur.sethuraman.thomsonreuters.com@reuters.net))






This article appears in: Stocks , Politics



More from Reuters

Subscribe






See Reuters News











Research Brokers before you trade

Want to trade FX?