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PRECIOUS-Gold up as U.S. rate hike expectations cool

Published 16/08/2016, 11:19 am
© Reuters.  PRECIOUS-Gold up as U.S. rate hike expectations cool
XAU/USD
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Aug 16 (Reuters) - Gold rose for a second day on Tuesday on lower expectations that the U.S. Federal Reserve will raise interest rates this year due to mixed macro economic signals from the world's largest economy.

FUNDAMENTALS

* Spot gold XAU= was up 0.5 percent at $1,345.68 an ounce at 0100 GMT. The metal rose 0.2 percent on Monday.

* U.S. gold GCcv1 rose 0.3 percent to $1,351 an ounce.

* The greenback was put on the defensive after weaker-than-expected U.S. data on Friday dented prospects of a near-term rate hike the Fed. USD/

* Central bankers and governments must come up with new policies to buffer their economies against persistently low interest rates that threaten to make future recessions deeper and more difficult to avoid, San Francisco Fed President John Williams said. The Bank of Japan's policy review could put up for debate its target for expanding base money through massive asset purchases. British employers have turned more cautious about hiring and the price of homes for sale fell by the most since late 2015, according to surveys that added to signs the economy has stumbled since the Brexit referendum. Soros Fund Management LLC sharply cut its shares in gold in the second quarter, when bullion prices rose to two-year highs, regulatory filings with the U.S. Securities and Exchange Commission showed on Monday.

* New York-based Paulson & Co, led by John Paulson, kept its stake in SPDR Gold Trust unchanged in the second quarter at 4.78 million shares worth $603.9 million. Jana Partners dissolved its share stake in the world's biggest gold exchange-traded fund (ETF) in the second quarter of 2016 as bullion prices rose to two-year highs, U.S. Securities and Exchange Commission filings showed on Monday.

* For the top stories on metals and other news, click

TOP/MTL or GOL

MARKET REPORT

* Asian shares rose to one-year highs, extending their gains so far this year to almost 10 percent, helped by a jump in oil prices and investor expectations of continued easy monetary policy around the globe. MKTS/GLOB

DATA AHEAD (GMT)0830 Britain Consumer prices July

0900 Germany ZEW economic sentiment August

1230 U.S. Consumer prices July

1230 U.S. Housing starts July

1230 U.S. Building permits July

1315 U.S. Industrial output July

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