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PRECIOUS-Gold up on buying, euro strength after Macron's win in France
May 8, 2017 / 1:41 AM / 4 months ago

PRECIOUS-Gold up on buying, euro strength after Macron's win in France

    May 8 (Reuters) - Gold firmed on Monday as bargain-hunters
moved in after prices dipped to seven-week lows and as the euro
strengthened after expected win of pro-EU candidate Emmanuel
Macron in the French presidential election.
    
    FUNDAMENTALS
    * Spot gold        rose 0.2 percent to $1,229.90 per ounce
as of 0124 GMT, after touching 1,224.86 earlier in the session,
its lowest since March 17.
    * Gold last week saw its biggest weekly percentage fall
since the week ending Nov. 11, ending over 3 percent lower.
    * U.S. gold futures         were up 0.3 percent at $1,230.50
an ounce.
    * In early Asian trading, the euro hit its highest since
Nov. 9 after centrist Emmanuel Macron comfortably won the French
presidential election.             
    * Macron was elected French president on Sunday with a
business-friendly vision of European integration, defeating
Marine Le Pen, a far-right nationalist who threatened to take
France out of the European Union.             
    * U.S. job growth rebounded sharply in April and the
unemployment rate dropped to 4.4 percent, near a 10-year low,
pointing to a tightening labor market that likely seals the case
for an interest rate increase next month despite moderate wage
growth.             
    * Gold demand in India could be muted in the second half of
2017, as the rollout of a new national sales tax from July is
expected to dent appetite in the world's second-biggest
consumer, the World Gold Council (WGC) said on Thursday.
            
    * Hedge funds and other money managers cut their net long
position in COMEX gold for the first time in seven weeks, in the
week to May 2, while they reduced their bullish stance in silver
to the lowest since January, U.S. government data showed Friday.
            
    * Hong Kong Exchanges and Clearing Limited (HKEX) said it
plans to introduce physically settled CNH (offshore renminbi, or
RMB) and U.S. dollar gold futures contracts in the third quarter
of this year, subject to regulatory approval.             
    * China's gold reserves were unchanged at 59.24 million
ounces in April, the country's central bank said on Sunday.
            
    * Gold demand in Asia rose last week, helped by a correction
in prices, but traders said some buyers have held back from
purchases while they wait for bullion prices to drop further.
        
    * Industrial gold production in Mali could drop slightly
this year as the West African country awaits production from new
mines in 2018, the ministry of mines said on Friday.
            

     DATA AHEAD (GMT) 
     *    China            Trade data            April
    0600  Germany          Industrial orders     March
    0800  Euro zone        Sentix index          May
    1400  U.S.             Employment trends     April

 (Reporting by Swati Verma in Bengaluru)
  

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