Gold near 1-wk high as soft U.S. inflation data dents dollar

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New Delhi | Published: April 29, 2019 7:35:52 AM

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.16 percent to 746.69 tonnes on Friday from 747.87 tonnes on Thursday.

Gold prices, dollar, dollar price, dollar value, Asian trade, Asian trade
Gold steadied on Monday, hovering near a more-than one week high touched in the previous session after the dollar fell as investors focused on soft U.S. inflation data that overshadowed strong GDP numbers.

FUNDAMENTALS

Spot gold was steady at $1,285.59 per ounce at 0123 GMT, having hit its highest since April 16 at $1,288.59 in the previous session.

U.S. gold futures were also firm at $1,287.70 an ounce.

The dollar fell against a basket of currencies on Friday to snap three days of gains, pressured by soft inflation data from the United States.

Calm settled over Asian currency markets on Monday as Japan kicked off a week of holidays, giving investors an extra excuse to sit on their hands ahead of a Federal Reserve policy meeting and U.S. jobs numbers.

Asian equity markets rose on Monday morning after an acceleration in U.S. economic growth in the first quarter lifted the S&P 500 index to a record closing high, but less upbeat aspects of the U.S. GDP report may limit the day’s upside.

U.S. economic growth accelerated in the first quarter, but the burst in growth was driven by a smaller trade deficit and the largest accumulation of unsold merchandise since 2015, temporary boosters that are seen weighing on the economy later this year.

Excluding trade, inventories and government spending, the U.S. economy grew at only a 1.3 percent rate in the first quarter, the slowest since the second quarter of 2013.

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Hedge funds and money managers increased their bearish wagers on COMEX gold in the week to April 23, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16 percent to 746.69 tonnes on Friday from 747.87 tonnes on Thursday.

Even as the lift from optimism over prospects for U.S.-China trade detente shows signs of wearing off for the wider U.S. stock market, upbeat sentiment around China’s economy could bolster shares of materials companies.
DATA AHEAD (GMT)

0900 Euro Zone Consumer Confid. Final April

1230 USA Consumption, Adjusted March

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