Stocks

PRECIOUS-Gold steady as dollar gains on fears of economic slowdown

BENGALURU, Jan 15 (Reuters) - Gold prices were steady onTuesday, pressured by a firm dollar on the back of concerns overslowing global growth, but well supported by expectations theU.S. Federal Reserve could refrain from raising interest ratesthis year.

FUNDAMENTALS

* Spot gold XAU= was flat at $1,291.24 per ounce at 0114GMT.

* Asian shares were on the back foot on Tuesday as surprisefalls in China's exports stoked worries about the globaleconomy, while the U.S. dollar was marginally higher against itspeers. MKTS/GLOBUSD/

* Chinese data on Monday showed imports fell 7.6 percentyear-on-year in December, while analysts had predicted a5-percent rise. Exports dropped 4.4 percent, confoundingexpectations for a 3-percent gain, pointing to further weakeningin the world's second-largest economy.

* Also fanning fears was a fall in euro zone industrialoutput in November, which confirmed a series of weak nationaldata that has raised concerns about the bloc's growth in thefinal quarter of the year.

* Market participants think that worries of slowing domesticand global growth as well as tame U.S. inflation will make Fedpolicymakers hesitant to raise interest rates in the world'slargest economy.

* UK Prime Minister Theresa May urged lawmakers on Monday totake a "second look" at her deal to leave the European Union, alast-ditch effort to win over a parliament that looks set toreject the agreement.

* May warned that failure to approve her Brexit deal couldlead to Britain eventually staying in the European Union.

* Meanwhile, investors are still eyeing developments intrade between the United States and China, with U.S. officialsexpecting a visit by Beijing's top trade negotiator this monthafter mid-level discussions between the two countries ended on aseemingly positive note.

* Newmont Mining CorpNEM.N said on Monday it would buysmaller rival Goldcorp IncG.TO , GG.N for $10 billion,creating the world's biggest gold producer in the face ofdwindling easy-to-find reserves of the precious metal.

* South Africa'sAssociation of Mineworkers and ConstructionUnion (AMCU) is planning to strike at Sibanye-Stillwater'sSGLJ.J local platinum operations, it said on Monday, expandingan earlier stoppage affecting its gold facilities.

DATA/EVENTS (GMT)0745 France CPI Dec0800 Germany Full Year GDP 20181100 Brazil Retail Sales Nov1330 US NY Fed Manufacturing Jan1330 US PPI Final Demand Dec1330 US PPI exFood/Energy Dec (Reporting by Karthika Suresh Namboothiri in Bengaluru; Editingby Joseph Radford) ((karthikasuresh.namboothiri@thomsonreuters.com; +91 80 67490997 (If within U.S. call 651-848-5832); Reuters Messaging:karthikasuresh.namboothiri.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.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More