Gold Hovers Near 2 Week Lows as Dollar Gains on Upbeat US data

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By retailj March 1, 2019 12:06

Gold Hovers Near 2 Week Lows as Dollar Gains on Upbeat US data

Gold steadied on Friday, but held close to its lowest in two weeks, as the US dollar recouped losses thanks to stronger-than-expected US economic data.

FUNDAMENTALS

Spot gold was up 0.1 per cent at $1,314.35 per ounce as of 0129 GMT, after touching its lowest since Feb. 15 at 1,312.15 in the previous session. US gold futures were flat at $1,315.80 an ounce.

The dollar, which pulled back from over three-week lows, was up 0.1 per cent against major currencies. US gross domestic product increased at a 2.6 per cent annualised rate in the fourth quarter, above economists’ forecasts for a 2.3 per cent gain. Asian shares inched higher on Friday with broader gains capped by investor caution as concerns about China’s economy and global trade weighed on sentiment.

Factory activity in China contracted to a three-year low in February as export orders fell at the fastest pace since the global financial crisis, highlighting deepening cracks in an economy facing weak demand at home and abroad.

US President Donald Trump warned he could walk away from a trade deal with China if it were not good enough, even as his economic advisers touted “fantastic” progress towards an agreement to end a dispute with the Asian country.

A second summit between Trump and North Korean leader Kim Jong Un collapsed over sanctions, and the two sides gave conflicting accounts of what happened, raising questions about the future of their denuclearisation negotiations. China’s leaders will pledge in parliament next week to keep the country on safe footing as the economy faces its biggest test in years, amid pressure to roll out more measures to bolster growth and revive weak business and consumer confidence.

Indian military officials said they welcomed Pakistan’s planned return of a captured pilot, but refused to confirm they would de-escalate a conflict between the two nuclear powers.

South Africa’s labour court has ordered a mineworkers’ union to suspend its plans for an industry-wide strike from Feb. 28 to March 7 until it issues a ruling on whether to block the action.

Two of Ecuador’s five mines in development are on track to start producing copper and gold in the fourth quarter of 2019 in line with plans, a senior government official said in an interview.

The US Mint sold 12,500 ounces of American Eagle gold coins in February, down 81.1 per cent from Mint sold 12,500 ounces of American Eagle gold coins in February, down 81.1 per cent from the previous month, according to the latest data.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.52 per cent to 784.22 tonnes on Thursday.

Courtesy: Reuters

retailj
By retailj March 1, 2019 12:06
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