June 19, 2018 / 1:12 AM / a month ago

PRECIOUS-Gold prices rise as U.S.-China trade tensions intensify

    BENGALURU, June 19 (Reuters) - Gold prices rose early
Tuesday, supported by a weaker dollar and a dip in Asian stocks
as a trade spat between the United States and China intensified.
    
    FUNDAMENTALS  
    * Spot gold        was up 0.3 percent at $1,281.45 an ounce
by 0046 GMT.  
    * U.S. gold futures         for August delivery were also
0.3 percent higher at $1,283.80 per ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, was down 0.2 percent
to 94.646.       
    * Asian stocks extended a global downturn on Tuesday, while
the safe-haven yen rose as U.S. President Donald Trump
threatened new tariffs on Chinese goods in an escalating
tit-for-tat trade war between the world's two biggest economies
that has rattled financial markets.            
    * Trump threatened on Monday to impose a 10 percent tariff
on $200 billion of Chinese goods.             
    * The United States and South Korea have agreed to suspend a
joint military exercise scheduled for August, South Korean and
U.S. officials said on Monday, following Trump's pledge to end
"war games" after his summit with North Korean leader Kim Jong
Un last week.              
    * The U.S. economy "appears to be in a pretty good place"
that should let the Fed continue its steady program of raising
interest rates, Atlanta Federal Reserve bank president Raphael
Bostic said on Monday, though he feels only one more such
increase is needed this year.             
    * Higher U.S. rates are rattling many emerging markets in
much the same way past tightening cycles did, but the Federal
Reserve's hawkishness could also bring cheer for a small group
of Asian economies that wouldn't mind seeing their currencies
weaken.             
    * Most government bond yields in the euro zone were steady
to a touch lower on Monday, capped by the European Central
Bank's signalling last week that it will keep interest rates low
well beyond the end of its stimulus scheme.             
    * Syrian state media said on Monday that U.S.-led coalition
aircraft had bombed a Syrian army position near the Iraqi
border, causing deaths and injuries, but the U.S. military
denied it was responsible.             
    
    DATA AHEAD (GMT)
    
    0800  Euro zone    Current account      April
    1230  U.S.         Building permits     May
    1230  U.S.         Housing starts       May

 (Reporting by Karen Rodrigues 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