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CORRECTED-PRECIOUS-Gold inches away from 3-mth high but safe-haven demand supports
February 7, 2017 / 1:34 AM / in 9 months

CORRECTED-PRECIOUS-Gold inches away from 3-mth high but safe-haven demand supports

(Corrects first bullet point to show gold on Monday touched its
highest since Nov. 11, not its lowest since Nov. 11)
    Feb 7 (Reuters) - Gold on Tuesday inched away from
three-month highs touched in the previous session, although it
was supported by safe-haven demand on the back of rising
political uncertainty globally.

    FUNDAMENTALS
    * Spot gold had slipped 0.1 percent to $1,234.20 per
ounce at 0051 GMT. On Monday, the metal touched its highest
since Nov. 11 at $1,235.73.
    * U.S. gold futures rose 0.32 percent to $1,236.20
an ounce.
    * The dollar index, which measures the greenback
against a basket of currencies, was up 0.1 percent at 100.030.
    * Political uncertainty in the United States has been fueled
by President Donald Trump's policies, the most controversial of
which is a temporary ban on entry by people from seven mostly
Muslim countries. 
    * Investors were also watching French politics, where
conservative presidential candidate Francois Fillon on Monday
vowed to fight on for the presidency despite a damaging scandal
involving taxpayer-funded payments to his wife for work that a
newspaper alleges she did not do. 
    * French pollster Opinionway published a survey on Monday
that showed independent Emannual Macron resoundingly winning a
presidential election runoff against far-right leader Marine Le
Pen. 
    * Philadelphia Federal Reserve Bank President Patrick Harker
on Monday said he would be open to raising interest rates again
at the U.S. central bank's March meeting if growth in jobs and
wages continues. 
    * The Fed raised rates for only the second time since the
financial crisis in December, and most Fed policymakers agree
with Harker that three more rate hikes this year would be
appropriate. Wall Street banks and interest-rate futures traders
are betting the Fed will only lift borrowing costs twice this
year, starting in June. 
    * More than half of British business leaders believe the
vote to leave the European Union has had a negative impact on
their companies but most firms are confident they can survive
the change, according to a survey on Monday. 
    * Japan will stick to a G7/G20 agreement against competitive
currency devaluation and continue to use monetary policy to
achieve its inflation goal, without targeting currencies,
Finance Minister Taro Aso said on Tuesday. 
    * The European Central Bank rejected U.S. accusations of
currency manipulation on Monday and warned that deregulating the
banking industry, now being openly discussed in Washington,
could sow the seeds of the next financial crisis. 
    

      DATA AHEAD (GMT)    
      0700    Germany      Industrial output        Dec
      0745    France       Trade data               Dec
      1330    U.S.         Trade data               Dec
      1500    U.S.  Job openings and labor turnover Dec
      2000    U.S.         Consumer credit          Dec

 (Reporting by Arpan Varghese in Bengaluru; Editing by Joseph
Radford)

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