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PRECIOUS-Gold inches higher on safe-haven demand amid China worries

Published 09/10/2018, 12:16 pm
Updated 09/10/2018, 12:20 pm
© Reuters.  PRECIOUS-Gold inches higher on safe-haven demand amid China worries
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BENGALURU, Oct 9 (Reuters) - Gold prices edged higher on Tuesday, drawing some safe-haven bids from risk-averse investors as Asian stocks fell amid worries over a potential slowdown in China's economic growth.

FUNDAMENTALS

* Spot gold XAU= was up 0.1 percent at $1,189.23 an ounce at 0102 GMT. It fell 1.2 percent on Monday, its biggest one-day percentage fall since Aug. 15, and also touched a more than one-week low of $1,183.19

* U.S. gold futures GCv1 rose 0.3 percent to $1,192.70 an ounce.

* Asian shares hit 17-month lows on Tuesday as investors fretted about everything from the Chinese economy, to trade wars, higher U.S. bond yields and political dysfunction in Europe. MKTS/GLOB

* The dollar .DXY was flat against a basket of six major currencies. USD/

* China will increase export tax rebates from Nov. 1 and quicken export tax rebate payments to support foreign trade, the cabinet said on Monday, as a trade war with the United States escalates. The United States remains concerned about China's recent currency depreciation, a senior Treasury official said on Monday, adding that it was unclear whether Treasury Secretary Steven Mnuchin would meet with any Chinese officials at the International Monetary Fund (IMF) and World Bank meetings this week. St. Louis Federal Reserve Bank President James Bullard said on Monday that the United States needed productivity gains to maintain its current growth rates, which could be achieved through investments and technology. U.S. Secretary of State Mike Pompeo on Monday hailed "significant progress" in talks with North Korean leader Kim Jong Un at the weekend and said the sides were "pretty close" to agreeing details for a second summit between Kim and President Donald Trump. Britain said on Monday it could not agree a divorce deal with the European Union without a framework pact on future relations, throwing down the gauntlet to the bloc which also says it cannot move on talks until London does. Exchange-traded fund (ETF) company GraniteShares said on Monday it had cut fees on its gold-backed fund, undercutting rival offerings by the World Gold Council and the Perth Mint as price competition in the sector intensifies. Venezuela lowered gold holdings by 2.998 tonnes to 161.226 tonnes in June 2018, according to IMF data. Palladium XPD= is outshining other major precious metals, more than doubling in value since early 2016 to leave prices of sister metal platinum XPT= in the shade and put parity with gold XAU= firmly in sight. AHEAD (GMT)

0600 Germany Trade data

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1000 U.S. NFIB business optimism

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