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REFILE-PRECIOUS-Gold extends gains as dollar, Asian stocks weaken

Published 01/06/2016, 11:20 am
Updated 01/06/2016, 11:30 am
© Reuters.  REFILE-PRECIOUS-Gold extends gains as dollar, Asian stocks weaken
XAU/USD
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MIAPJ0000PUS
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(Corrects first bullet point to show bullion gained 0.8 pct on Tuesday, not Wednesday)

BENGALURU, June 1 (Reuters) - Gold rose early on Wednesday after closing up the previous day for the first time in ten sessions, supported by an easing dollar and weaker Asian stocks.

FUNDAMENTALS

* Spot gold XAU= had climbed 0.2 percent to $1217.08 per ounce by 0037 GMT. Bullion gained 0.8 percent on Tuesday in its biggest one-day gain since May 13.

* U.S. gold GCcv1 was up 0.2 percent at $1219.8.

* Asian stocks sagged on Wednesday as a slip in crude oil prices dampened investors' appetite for riskier assets, while the recently bullish dollar stalled against the euro and yen following a mixed bag of U.S. economic data. MKTS/GLOB

* MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.3 percent.

* The dollar index .DXY pulled back from Monday's two-month peak of 95.895 to stand at 95.802.

* U.S. consumer spending recorded its biggest increase in more than six years in April as households stepped up purchases of automobiles, suggesting an acceleration in economic growth that could persuade the Federal Reserve to raise interest rates soon. The U.S. economy is on track to grow by a 2.9 percent annualized rate in the second quarter following surprisingly strong data on domestic personal spending in April, Atlanta Federal Reserve's GDPNow forecast model showed on Tuesday. Prime Minister Shinzo Abe is essentially giving up on fiscal reform by postponing a sales tax hike for two and a half years, putting Japan's credibility on the line and heightening the risk of a credit downgrade that could lift corporate borrowing costs. The U.S. Mint sold 76,500 ounces of American Eagle gold coins in May, down 27.5 percent from the previous month, according to the latest data. For the top stories on metals and other news, click TOP/MTL or GOL

MARKET REPORT

* Oil prices dipped on Tuesday as a stronger dollar and slide in equity prices sparked profit-taking, but crude futures posted a fourth straight monthly gain as investors bet the global glut was slowly easing. O/R

DATA AHEAD (GMT)

0100 China official manufacturing PMI

May

0100 China official non-manufacturing PMI

May

0145 China Caixin manufacturing PMI final

May

0755 Germany Markit/BME manufacturing PMI

May

0800 Euro zone Markit manufacturing PMI final May

1400 U.S. construction spending

Apr

1400 U.S. ISM manufacturing PMI

May

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