PRECIOUS-Gold inches lower on trade optimism; all eyes on U.S. GDP data

Published 20/12/2019, 01:00 pm
© Reuters.  PRECIOUS-Gold inches lower on trade optimism; all eyes on U.S. GDP data
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Dec 20 (Reuters) - Gold prices inched lower on Friday due to increased risk appetite on hopes of an interim Sino-U.S. deal being signed soon and as investors awaited the release of U.S. gross domestic product data.

FUNDAMENTALS

* Spot gold XAU= edged 0.1% lower to $1,478.00 per ounce by 0135 GMT. U.S. gold futures GCv1 fell 0.2% to $1,482.00 per ounce.

* U.S. Treasury Secretary Steven Mnuchin said on Thursday the United States and China would sign their so-called Phase one trade pact at the beginning of January, adding that it would not be subject to any renegotiation. China's Finance Ministry unveiled a new list of import tariff exemptions for a duration of one year starting Dec. 26 for six chemical and oil products from the United States. Asian shares firmed, close to the 18-month peak, as trade thinned in the run-up to Christmas and the market absorbed the positive trade update. MKTS/GLOB

* The dollar index .DXY , all set to gain for the first week in four, held steady against a basket of currencies, making gold cheaper for holders of other currencies. USD/

* In United States, economic data showed mixed signals as the initial jobless claims report was strong with applications for unemployment benefits slipping from a more than two-year high, while factory activity data for the Mid-Atlantic region was almost flat in December. Prime Minister Boris Johnson unveiled what he called a radical government agenda on Thursday, setting his sights on a quick Brexit, future trade deals and on transforming Britain to repay the trust of voters who handed him a landslide election victory. Elsewhere, palladium XPD= rose 0.4% to $1,943.74 per ounce. The metal prices had hit an all-time peak of $1,998.43 on Tuesday.

* Silver XAG= slid 0.1% to $17.03 per ounce, while platinum XPT= edged up 0.1% to $934.60.

DATA/EVENTS (GMT) 0930 UK

GDP QQ, YY

Q3 1200 Brazil IPCA-15 Mid-Month CPI

Dec 1330 US

GDP Final

Q3 1500 US

Consumption, Adjusted MM Nov 1500 US

U Mich Sentiment Final

Dec 1500 EU

Consumer Confidence Flash Dec

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