Reuters logo
PRECIOUS-Gold dips as dollar pares losses, stocks hold ground
July 3, 2017 / 5:17 AM / 3 months ago

PRECIOUS-Gold dips as dollar pares losses, stocks hold ground

    * U.S. dollar index rises from 9-month low reached on Friday
    * China PMI points to steady growth

 (Adds comment, updates prices)
    By Nithin ThomasPrasad and Koustav Samanta
    BENGALURU, July 3 (Reuters) - Gold slipped on Monday as
investors shunned safe-haven assets, with Asian stocks remaining
near two-year highs and the dollar rising from a nine-month low.
    "Gold fell slightly as a rally in global stock markets saw
investor appetite wane for the precious metal," ANZ analysts
said in a note on Monday. 
    "The safe-haven buying that had pushed gold to an
eight-month high earlier this month has slowly petered out, with
risk-appetite improving in recent days."
    Spot gold        had fallen 0.4 percent to $1,235.91 per
ounce at 0708 GMT. Bullion prices have slid steadily since
hitting their strongest in nearly 8 months on June 6 at
$1,295.97.  
    U.S. gold futures         for August delivery dropped 0.5
percent to $1,235.90 per ounce.    
    The dollar index       , which compares the greenback to a
basket of major currencies, rose from a nine-month low on
Monday. However, signs of central banks in Europe moving away
from accommodative monetary policies kept the euro and sterling
well bid, and capped gains for the dollar.        
    "Gold has had a disappointing (last) week, now barely
trading above the 200-day moving average at $1,233 an ounce, and
weakening against both the dollar and equities. The dollar could
be a key driver short-term," said Jordan Eliseo, chief economist
at gold trader ABC Bullion. 
    "Demand for physical in developed markets is soft, with U.S.
Mint American Eagle sales in H1 2017 running at their weakest
levels in a decade," he added.
    U.S. Mint sales of American Eagle gold coins totalled 6,000
ounces in June, down 92 percent from June 2016 and bringing the
tally for the first half of the year to 192,500 ounces.
                
    U.S. consumer spending rose modestly in May and inflation
cooled, according to Commerce Department data released on
Friday, pointing to a slow-but-steady economic expansion that
could still lead the Federal Reserve to raise interest rates by
year-end.             
    Higher interest rates tend to boost the dollar and push bond
yields up, putting pressure on gold prices by increasing the
opportunity cost of holding non-yielding bullion.
    Asian stocks held near two-years highs on Monday, while
signs of stability in China's economy and a recovery in the
European economy helped to boost global share prices in the
first half of this year.            
    Among other precious metals, silver        fell 0.1 percent
to $16.55 per ounce.
    Palladium        climbed 0.5 percent to $845.30 per ounce
      , while platinum        dropped 0.5 percent to $916.25 per
ounce.

 (Reporting by Nithin Prasad and Koustav Samanta in Bengaluru;
Editing by Richard Pullin, Christian Schmollinger and Joseph
Radford)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below