Gold inches up on weaker dollar

BENGALURU : Gold prices edged higher on Thursday, supported by a weaker dollar amid ongoing concerns about a trade war between the United States and its allies.


Spot gold was 0.1 per cent higher at $ 1,296.91 per ounce by 0124 GMT.

US gold futures for August delivery were nearly unchanged at $ 1,301.30 per ounce.

The dollar index , which measures the greenback against a basket of six major currencies, fell 0.2 per cent to 93.497. [USD/]

US President Donald Trump is not backing down from the tough line he has taken on trade, the White House’s top economic adviser said on Wednesday, setting the stage for a showdown with top allies at this week’s G7 summit in Canada.

The European Union expects to hit US imports with additional duties from July, ratcheting up a transatlantic trade conflict after Washington imposed its own tariffs on incoming EU steel and aluminium.

The euro stayed near two-week highs against many of its rivals on Thursday, on rising bets the European Central Bank (ECB) may announce it will wind down its stimulus programme by year-end as early as next week.

The European Central Bank will debate next week whether to end bond purchases later this year, the bank’s chief economist said on Wednesday, a hawkish message seen preparing investors for another cut in stimulus.

Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.42 per cent to 832.59 tonnes on Wednesday.

Outflows of North American gold-backed exchange traded funds (ETFs) rose in May, as volatility in the gold market dragged prices lower, the World Gold Council said on Wednesday.

Rescuers were searching on Wednesday for seven workers who went missing in at a gold and silver mine in northern Mexico after a dam filled with liquid waste collapsed, authorities said.

The Perth Mint’s sales of gold products fell about 2.4 per cent in May from a month earlier, the lowest in over a year, while silver sales rose about 21 per cent, the mint said on Wednesday.

India’s gold imports plunged a fifth straight month in May to 48 tonnes as a rally in local prices to near their highest level in 21 months curtailed retail purchases, provisional data from precious metals consultancy GFMS and bank dealers showed.