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PRECIOUS-Gold prices rise on economic, political turmoil

Published 29/08/2019, 11:56 am
© Reuters.  PRECIOUS-Gold prices rise on economic, political turmoil
XAU/USD
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Aug 29 (Reuters) - Gold prices climbed up on Thursday, as fears of an economic slowdown continued, amid the protracted Sino-U.S. trade conflict and expectations of monetary stimulus, keeping the save-haven metal in demand.

FUNDAMENTALS

* Spot gold XAU= rose 0.2% to $1,542.35 per ounce, as of 0142 GMT.

* U.S. gold futures GCcv1 were up 0.1% at $1,550.50 an ounce.

* The U.S. Treasury yield curve remains inverted, which is commonly considered a sign of an impending recession. US/

* On Wednesday, underscoring the gloomy global sentiment, yields on 30-year U.S. Treasuries and 10-year German bunds hit record lows.

* The U.S. Federal Reserve and the European Central bank are expected to cut rates next month, while many investors believe the Bank of Japan could also join the fray if market sentiment weakens further. MKTS/GLOB

* Markets are fully priced in for a quarter-point cut in interest rates by the U.S. Fed next month, and over 100 basis points of easing by the end of next year. FEDWATCH

* The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15. SPDR Gold Trust (P:GLD) GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 1% to 882.41 tonnes on Wednesday from Tuesday. GOL/ETF

* The dollar index .DXY , which measures the greenback against a basket of six major currencies, was little changed after rising 0.2% in the previous session. USD/

* British Prime Minister Boris Johnson decided to suspend Britain's parliament for more than a month before Brexit. AHEAD (GMT)

0645 France GDP QQ Final

Q1 0755 Germany Unemployment Rate SA

Aug 0900 EU

Consumer Confid. Final Aug 1200 Germany CPI Prelim YY

Aug 1200 Brazil GDP QQ, YY

Q2 1230 US

GDP 2nd Estimate

Q2 1230 US

Initial Jobless Claims Weekly

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