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PRECIOUS-Gold prices fall as easing trade worries lead to riskier bets

Published 16/12/2019, 12:29 pm
© Reuters.  PRECIOUS-Gold prices fall as easing trade worries lead to riskier bets
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Dec 16 (Reuters) - Gold prices inched lower on Monday as investors moved to riskier assets following the announcement of an interim deal between the United States and China that cooled a 17-month-old trade dispute.

FUNDAMENTALS

* Spot gold XAU= was down 0.1% at $1,473.88 per ounce, as of 0050 GMT. U.S. gold futures GCv1 were down 0.2% at $1,478.60.

* The "phase one" trade agreement was announced on Friday and on Sunday U.S. Trade Representative Robert Lighthizer said U.S. exports to China will nearly double over the next two years although officials are yet to decide a date to sign the agreement. The United States suspended some tariffs on Chinese goods that was due to go into effect on Sunday, while China State Council's customs tariff commission said it had dropped its plan for additional tariffs on some U.S. goods. Asian shares rose as investors breathed a sigh of relief after a thaw in tariff war. MKTS/GLOB

* The U.S. economy is doing well and looks set to stay that way next year, two top Federal Reserve policymakers said on Friday, remarks that suggest they are content to leave interest rates where they are. However, data from U.S. showed on Friday retail sales increased less than expected in November as Americans cut back on discretionary spending despite a strong labour market. In the UK, British Prime Minister Boris Johnson will "get Brexit done" by Jan. 31 and then agree to a new trade deal with the European Union by the end of 2020, cabinet office minister Michael Gove said on Sunday. Speculators slashed their bullish positions in COMEX gold in the week to Dec. 10, data showed. CFTC/

* Gold dealers in India offered a discount last week due to plentiful supplies and slack demand during the wedding season, with other regions in Asia expecting improvement in buying ahead of the Christmas and Chinese New Year festivities. GOL/AS

* Elsewhere, Palladium XPD= rose 0.6% to $1,941.09 an ounce, silver XAG= shed 0.1% to $16.92 per ounce, while platinum XPT= fell 0.2% to $926.08.

DATA/EVENTS (GMT) 0200 China

Urban Investment (YTD) YY

Nov 0200 China

Industrial Output YY

Nov 0200 China

Retail Sales YY

Nov 0815 France

Markit Mfg, Serv, Comp Flash PMIs

Dec 0830 Germany Markit Mfg, Serv, Comp Flash PMIs

Dec 0900 EU

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Dec 0930 UK

Markit Mfg, Serv, Composite Flash PMIs Dec 1100 EU

Reserve Assets Total

Nov 1445 US

Markit Mfg, Serv, Comp Flash PMIs

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