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REFILE-PRECIOUS-Gold falls as U.S.-China trade pact hopes spur risk appetite

Published 15/11/2019, 02:16 pm
© Reuters.  REFILE-PRECIOUS-Gold falls as U.S.-China trade pact hopes spur risk appetite
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(Refile to insert dropped word "spur" in headline)

Nov 15 (Reuters) - Gold prices fell on Friday as investors' risk appetite was whetted by comments from White House economic adviser Larry Kudlow that the United States is nearing an interim trade pact with China.

FUNDAMENTALS

* Spot gold XAU= declined 0.24% to $1,467.44 per ounce by 0117 GMT, but was still set to rise more than 0.6% this week.

* U.S. gold futures GCv1 were down 0.4% at $1,468.20 an ounce.

* The United States is getting close to a trade agreement with China, White House economic adviser Larry Kudlow said on Thursday, citing what he called very constructive discussions with Beijing. The world's two largest economies were in close touch via telephone, Kudlow said, adding an agreement could come soon.

* Early in the Asian trading day, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.16%. MKTS/GLOB

* Gold prices have gained more than 14% this year on uncertainties over the months-long China-U.S. trade war, which has roiled financial markets and prompted fears of a global economic slowdown.

* Global sentiment has been hit in recent weeks by conflicting assessments of progress in talks aimed at ending the two countries' trade spat.

* However, a Reuters poll of economists showed a permanent truce is unlikely over the coming year, and, while concerns have eased over a U.S. recession, an economic rebound is also not expected soon. Also weighing on the precious metal was Thursday's data showing that the German economy narrowly avoided an expected slip into recession in the third quarter, as consumers, state spending and construction drove a 0.1% quarterly expansion in Europe's largest economy.

DATA/EVENTS (GMT) 1000 EU HICP Final MM, YY

Oct 1100 EU Reserve Assets Total

Oct 1330 US Retail Sales MM

Oct 1415 US Industrial Production MM Oct

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