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PRECIOUS-Gold prices steady despite Manchester blast, US political woes support
May 23, 2017 / 1:31 AM / 4 months ago

PRECIOUS-Gold prices steady despite Manchester blast, US political woes support

    May 23 (Reuters) - Gold prices were steady on Tuesday
despite a blast at a concert in the English city of Manchester
that left at least 19 people dead in what British police said
was being treated as a terrorist incident.
    The metal has been supported as the dollar weakened against
the euro amid political tensions in the U.S. due to the ongoing
controversies involving President Donald Trump.    
        
    FUNDAMENTALS
    * Spot gold        was up 0.1 percent at $1,261.62 per ounce
by 0100 GMT. 
    * U.S. gold futures         were flat at $1,261 an ounce.
    * At least 19 people were killed in a blast at a concert in
the English city of Manchester on Monday where U.S. singer
Ariana Grande had been performing and two U.S. officials said a
suicide bomber was suspected in the explosion.             
    * Safe-haven demand for gold often increases at times of
geopolitical uncertainty.
    * Spot gold advanced by 2.2 percent last week as the furore
over Trump's alleged links to Russia and his firing of former
Federal Bureau of Investigation chief James Comey raised
concerns about his ability to push through promised fiscal
stimulus.                         
    * The euro hovered near a six-month high against the dollar
on Tuesday after German Chancellor Angela Merkel said the
currency was "too weak".                    
    * With good progress toward the Federal Reserve's twin goals
of stable prices and full employment, the U.S. central bank
ought to keep raising interest rates and begin trimming its
giant balance sheet before year's end, Dallas Fed President
Robert Kaplan said on Monday.
    * U.S. Fed Board Governor Lael Brainard on Monday said that
it is still a "question" for her if the U.S. economy is at full
employment or if there is still more slack left in the labor
market.             
    * The Chicago Fed said on Monday its gauge of U.S. economic
activity strengthened in April to its highest level since late
2014, suggesting an acceleration in production and hiring
activity following an anemic first quarter.             
    * Euro zone countries improved their fiscal stance, a sign
of growing financial stability, the EU Commission said on
Monday, but it called on France to take new action to comply
with EU deficit limits and warned Italy faced "urgent"
challenges.             
    * Holdings in SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, rose 0.21 percent to 852.48
tonnes on Monday.
    
    DATA/EVENT AHEAD (GMT) 
    0600  Germany Detailed GDP                          Q1 
    0645  France Business climate                      May 
    0700  France Markit manufacturing PMI flash        May 
    0730  Germany Markit manufacturing PMI flash       May 
    0800  Germany Ifo business climate                 May 
    0800  Euro zone Markit manufacturing PMI flash     May 
    1345  U.S. Markit manufacturing PMI flash          May 
    1400  U.S. New home sales                          Apr 

 (Reporting by Vijaykumar Vedala in Bengaluru)
  

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