Gold holds firm on weaker dollar

By: | Updated: December 4, 2018 8:21 AM

Gold prices held firm early on Tuesday, having hit a more than three-week high in the previous session, as the dollar stumbled after the United States and China agreed to a temporary truce in their trade conflict.

Gold holds firm on weaker dollar

Gold prices held firm early on Tuesday, having hit a more than three-week high in the previous session, as the dollar stumbled after the United States and China agreed to a temporary truce in their trade conflict.

FUNDAMENTALS

* Spot gold was up 0.1 percent at $1,232.20 per ounce at 0121 GMT. Prices touched a peak of $1,234.87 on Monday, their highest since Nov. 7.

* U.S. gold futures were down 0.1 percent at $1,238.2 per ounce.

* The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.1 percent.

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* The United States expects immediate action by China on trade issues after a deal reached by the countries’ leaders, including lower tariffs on automobiles and measures against intellectual property theft and forced technology transfers, a White House official said on Monday.

* Top U.S. Federal Reserve officials say a strong economy will likely keep their rate increase plans intact, but on Monday a key signal began to waver that may intensify debate about whether conditions are as solid as they seem.

* Global economic prospects appear gloomy as year-end approaches after factory activity and export orders weakened in November, prompting analysts to predict no quick rebound amid persistent global trade tensions.

* Fed Chairman Jerome Powell’s testimony to Congress’ Joint Economic Committee on Wednesday has been postponed and will be rescheduled at a later date, the committee said on Monday.

* British Prime Minister Theresa May will urge parliament to back her Brexit deal on Tuesday at the start of a high-stakes five-day debate that could determine her fate and whether Britain leaves the European Union without a deal.

READ ALSO | Asia shares ease as doubts emerge over Sino-US trade war truce

* Three weeks of “yellow vest” protests have hit the French economy hard, with trade in shops, hotels and restaurants falling significantly, Finance Minister Bruno Le Maire said on Monday.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.46 percent to 758.21 tonnes on Monday.

* Sales of gold products by Australia’s Perth Mint surged nearly 75 percent in November from a month earlier to the highest in almost two years on additional demand from Europe, the mint said on Monday.

* Sudan will allow local private sector firms to export gold, Prime Minister Moataz Moussa said on Monday, relaxing the central bank’s grip over exports of the metal as the government tries to shore up the country’s struggling economy.

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