March 5, 2018 / 1:18 AM / 3 months ago

PRECIOUS-Gold prices gain as dollar weakens amid trade war fears

    March 5 (Reuters) - Gold prices rose early on Monday as the
dollar remained pressured amid fears of a global trade war
following U.S. President Donald Trump's decision to impose
tariffs on imports of aluminum and steel.
                   
    FUNDAMENTALS  
    * Spot gold        was up 0.2 percent at $1,324.13 an ounce
at 0056 GMT. Prices rose 0.5 percent in the previous session,
its biggest one-day percentage gain since Feb. 22.
    * U.S. gold futures         were up 0.2 percent at $1,325.4
per ounce.
    * The dollar index       , which measures the greenback
against a basket of major currencies, was flat at 89.900, after
falling against most currencies on Friday. 
    * Asian shares hovered near 2-1/2 week lows and the
safe-haven yen rose on Monday amid fears of a global trade war,
while the euro pared gains as investors worried Italy's national
elections could deliver an anti-establishment government.
                  
    * Trump struck a defiant tone on Friday, saying trade wars
were good and easy to win, after his plan to put tariffs on
steel and aluminum imports triggered threats of retaliation from
trading partners and a slide in stock markets.             
    * Germany's Social Democrats (SPD) decisively backed another
coalition with Chancellor Angela Merkel's conservatives on
Sunday, clearing the way for a new government in Europe's
largest economy after months of political uncertainty.
            
    * Italy's national elections are likely to produce a hung
parliament, exit polls on Rai state television and private
channel La 7 showed after voting ended on Sunday.             
    * Hedge funds and money managers increased their net short
position in silver contracts to a record high in the week to
Feb. 27, U.S. Commodity Futures Trading Commission (CFTC) data
showed on Friday.             
    * Gold dealers cut their net long position by 29,684
contracts to 157,634 contracts in the week to Feb. 27, according
to the CFTC. This was the lowest net long position since early
January.

    DATA AHEAD (IN GMT)
    
    0145  China             Caixin services PMI            Feb
    0850  France            Markit services PMI            Feb
    0855  Germany           Markit services PMI            Feb
    0900  Euro zone         Markit services PMI final      Feb
    0930  Euro zone         Sentix index                   Mar
    1000  Euro zone         Retail sales                   Jan
    1500  U.S.              ISM non-manufacturing PMI      Feb

 (Reporting by Eileen Soreng in Bengaluru; editing by Richard
Pullin)
  
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