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PRECIOUS-Gold near 1-wk lows as trade, emerging market concerns boost dollar

Published 05/09/2018, 11:09 am
Updated 05/09/2018, 11:10 am
© Reuters. PRECIOUS-Gold near 1-wk lows as trade, emerging market concerns boost dollar
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BENGALURU, Sept 5 (Reuters) - Gold on Wednesday held near one-week lows touched in the previous session, as global trade tensions and emerging market concerns boosted demand for the U.S dollar, undermining the metal's safe haven status.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,191.45 percent at 0102 GMT, after touching a more than one-week low at $1,189.20 on Tuesday.

* U.S. gold futures were down 0.1 percent at $1,197.90 an ounce.

* Emerging markets stocks and currencies were under added pressure on concerns about inflation in Turkey and after data showed South Africa had slumped into recession in the second quarter. U.S. President Donald Trump could follow through on plans to impose levies on $200 billion more of Chinese imports after a public comment period on his proposed new tariffs on Chinese goods is set to end on Thursday. U.S.-Canada trade talks were expected to resume on Wednesday after the last round ended on Friday with no deal to revamp the North American Free Trade Agreement (NAFTA). Trump has told Congress he would sign a bilateral trade pact with Mexico. Gold has lost about 8.5 percent this year amid rising U.S. interest rates, trade disputes and the Turkish currency crisis, with investors parking their money in the dollar.

* Spot gold XAU= may break a support at $1,190 per ounce and fall towards $1,179, as suggested by its wave pattern, a projection analysis and a falling channel. U.S. Treasury yields rose to three week highs on Tuesday after data showed that U.S. manufacturing activity accelerated to a more than 14-year high in August, and on heavy corporate debt supply. U.S. manufacturing activity accelerated to more than a 14-year high, boosted by a surge in new orders, but increasing bottlenecks in the supply chain because of a robust economy and import tariffs could restrain further growth. Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 1.09 percent to 746.92 tonnes on Tuesday from Friday.

* India raised gold holdings by 6.8 tonnes to 573.1 tonnes in 2018 July, data from International Monetary Fund showed. South African precious metals producer Sibanye-Stillwater SGLJ.J said on Tuesday that it was launching a tender offer worth up to $400 million to buy back some of its bonds.

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