June 8, 2018 / 1:19 AM / 10 days ago

PRECIOUS-Gold steady as investors wait for next week's Fed meeting

    BENGALURU, June 8 (Reuters) - Gold prices were largely
unchanged on Friday as investors remained cautious ahead of key
events next week such as a U.S. Federal Reserve policy meeting
and a summit between the United States and North Korea. 
   
    FUNDAMENTALS  
    * Spot gold        was steady at $1,296.60 per ounce at 0052
GMT. It has risen about 0.3 percent so far this week.
    * U.S. gold futures         for August delivery fell 0.2
percent to $1,301.10 per ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, was little changed at
93.439. It fell to a three-week low in the previous session.
      
    * The U.S. dollar's dominance is forecast to fade soon, with
any sudden change in expectations for the policies of other
central banks posing the biggest risk, a Reuters poll of
currency strategists showed.             
    * Leaders of the Group of Seven rich nations headed for a
summit in Canada on Thursday more divided than at any time in
the group's 42-year history, as U.S. President Donald Trump's
"America First" policies risk causing a global trade war and
deep diplomatic schisms.             
    * Trump on Thursday held out the prospect of inviting North
Korean leader Kim Jong Un to the White House if he deemed next
week's summit a success while also signaling he was willing to
walk away if he thought talks did not go well.             
    * The U.S. Fed will likely raise its target interest rate to
above the rate of inflation for the first time in a decade next
week, igniting a new debate: when to stop.             
    * The number of Americans filing for unemployment benefits
unexpectedly fell last week, pointing to a further tightening in
labour market conditions.             
    * The euro zone began the year with slower economic growth
as fears of a trade war with the United States appeared to take
their toll, official data showed on Thursday.             
    * Russian gold miner Polyus           said on Thursday it
planned to make a final investment decision on Sukhoi Log, one
of the world's largest untapped gold deposits, by 2020-2021,
when it would also begin capital spending on construction.
            
    * Spot silver        prices are poised to reach $20 per
ounce by the end of the year, boosted by global growth,
increased industrial demand and safe-haven bids amid
geopolitical worries, analysts said on Thursday.             

    DATA AHEAD (GMT)
    
    *     China      Trade data            May
    0600  Germany    Industrial output     April
    0600  Germany    Trade data            April
    0645  France     Industrial output     April
    1400  U.S.       Wholesale sales       April

    *No exact timing

 (Reporting by Karen Rodrigues in Bengaluru
Editing by Joseph Radford)
  
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