1. Gold falls after dollar firms on deal to fund US government

Gold falls after dollar firms on deal to fund US government

Gold fell on Monday after the dollar edged up as U.S. congressional negotiators hammered out a deal on a spending package to keep the federal government funded through September.

By: | Published: May 1, 2017 8:44 AM
Gold fell on Monday after the dollar edged up as U.S. congressional negotiators hammered out a deal on a spending package to keep the federal government funded through September. (Reuters)

Gold fell on Monday after the dollar edged up as U.S. congressional negotiators hammered out a deal on a spending package to keep the federal government funded through September.

FUNDAMENTALS

* Spot gold dropped 0.3 percent to $1,264.06 per ounce, as of 0236 GMT.
* Gold, last week, saw its biggest weekly percentage fall since the week of March 10, ending about 1.2 percent lower.
* U.S. gold futures eased 0.2 percent to $1,265.20 an ounce.
* The dollar index rose 0.1 percent to 99.118.
* U.S. congressional negotiators have hammered out a bipartisan agreement on a spending package to keep the federal government funded through the end of the current fiscal year on Sept. 30, a senior congressional aide said on Sunday.
* The U.S. economy grew at its weakest pace in three years in the first quarter as consumer spending almost stalled, but a surge in business investment and wage growth suggested activity would regain momentum as the year progresses.
* Hedge funds and other money managers increased their net long position in COMEX gold for the sixth straight week to April 25, lifting it to a 5-1/2-month high, U.S. Commodity Futures Trading Commission (CFTC) data showed Friday. * Banks remain stubbornly cautious on gold’s price prospects this year in spite of the metal’s strong first-quarter performance, as the prospect of higher interest rates take the shine off the metal.
* Demand for gold in India was seen higher ahead of an auspicious day for gold purchases on Friday compared to last year, with lower prices also acting as a catalyst.
* South Africa’s AngloGold Ashanti has halted all exploration work at its La Colosa project in central Tolima, Colombia, after voters backed a proposal to ban mining in the municipality, the company said on Thursday. * On Sunday, U.S. President Donald Trump increased diplomatic contacts with allies in Asia to secure their cooperation to pressure North Korea on its nuclear bomb and missile programs.
* Growth in China’s manufacturing sector slowed faster than expected in April, an official survey showed on Sunday, as producer price inflation cooled and policymakers’ efforts to reduce financial risks in the economy weighed on demand.
* British Prime Minister Theresa May expects divorce talks with the European Union to be tough, she said on Sunday after EU leaders agreed stiff terms and voiced alarm at “illusions” in London that may wreck a deal.

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