Renewable Energy

Gold steady amid Fed rate cut views, trade uncertainty

Credit: REUTERS/Neil Hall

Gold held steady in early Asian trade on Thursday as festering Sino-U.S. trade tensions and hopes of an interest rate cut by the U.S. central bank following soft inflation data buoyed demand for the safe-haven bullion.

June 13 (Reuters) - Gold held steady in early Asian trade on Thursday as festering Sino-U.S. trade tensions and hopes of an interest rate cut by the U.S. central bank following soft inflation data buoyed demand for the safe-haven bullion.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $1,334.11 as of 0148 GMT.

* U.S. gold futures GCv1 were steady at $1,336.70 an ounce.

* U.S. consumer prices barely rose in May, data from the Labor Department showed on Wednesday, pointing to moderate inflation that together with a slowing economy increased pressure on the Federal Reserve to cut interest rates this year.

* Weak economic data such as Wednesday's has investors hoping the Fed would give hints about a rate cut after its June 18-19 meeting.

* The dollar index .DXY versus a basket of six major currencies was steady, having risen more than 0.3% overnight. USD/

* U.S. President Donald Trump declined to set a deadline on Wednesday for levying tariffs on another $325 billion of Chinese goods and called the relationship with Beijing good but "testy" after China walked back commitments for a trade deal.

* Trump said he had a "feeling" a U.S.-China trade deal could be reached. But he again threatened to increase tariffs on Chinese goods if there is no agreement.

* Trump says he wants to meet with Chinese President Xi Jinping at the June 28-29 G20 summit in Osaka, Japan and will decide on whether to extend tariffs to almost all Chinese imports after that.

* Asian stocks stuttered on Thursday, dogged by the uncertainty over an intractable U.S.-China trade dispute. MKTS/GLOB

* Holdings of SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, rose 0.5% to 759.70 tonnes on Wednesday from 756.18 tonnes on Tuesday.

DATA AHEAD (GMT)

* 0600 Germany HICP Final YY May

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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