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PRECIOUS-Gold steady on stronger equities, dollar
May 2, 2017 / 1:21 AM / 8 months ago

PRECIOUS-Gold steady on stronger equities, dollar

    May 2 (Reuters) - Gold was steady on Tuesday after falling
nearly one percent to a three-week low in the previous session
as equities and the dollar climbed, while worries over North
Korea eased.
    
    FUNDAMENTALS
    * Spot gold        was steady at $1,256.60 per ounce, as of
0052 GMT. Bullion prices on Monday dropped 0.9 percent to
$1,253.66 an ounce, its weakest since April 11.
    * U.S. gold futures         were up 0.2 percent at $1,257.60
an ounce.
    * Asian shares advanced on Tuesday, helped by rising
optimism on the technology industry and easing concerns over
North Korea, while the dollar edged up to a one-month high
versus the yen.            
    * Firmer equities discourage the buying of
non-interest-paying bullion, which is priced in dollars.
    * The dollar hit a one-month high against the yen on
Tuesday, lifted by Treasury yields which surged after U.S.
Treasury Secretary Steven Mnuchin commented on the possibility
of ultra long-term bond issuance.             
    * Mnuchin also said on Monday that economic growth of three
percent is achievable in the next two years as the Trump
administration sets out to dramatically cut taxes.             
    * The Federal Reserve will hold a two-day meeting on Tuesday
and Wednesday, with a statement scheduled for release at 2 p.m.
EDT (1800 GMT) Wednesday.            
    * The Fed is widely expected to hold rates steady, but
investors will focus on the language of the statement for
guidance on the number of rate increases this year and next.
    * Interest rate futures are still pricing a roughly 70
percent chance the Fed will raise rates in June, according to
the CME's FedWatch.
    * U.S. factory activity slowed in April while consumer
spending was unchanged in March and a key inflation measure
recorded its first monthly drop since 2001, but economists still
expect an interest rate increase in June as the labor market
tightens.             
    * Worries about tensions over the Korean peninsula eased
after U.S. President Donald Trump on Monday opened the door to
meeting North Korea's Kim Jong Un, saying he would be honored to
meet the young leader under the right circumstances, even as
Pyongyang suggested it would continue its nuclear weapons tests.
             
    * A U.S. judge on Monday said he wanted to know whether Iran
employs any lawyers for a wealthy Turkish gold trader accused of
helping that country evade U.S. sanctions, a team that includes
former New York City Mayor Rudolph Giuliani.                 

 (Reporting by Swati Verma in Bengaluru; Editing by Richard
Pullin)
  

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