Gold holds steady amid firm dollar, stronger equities

BENGALURU: Gold prices were little changed on Wednesday, after slipping to a near six-month low in the previous session, as the dollar hovered close to an 11-month peak and equities rebounded.

FUNDAMENTALS

* Spot gold held steady at $ 1,273.82 an ounce by 0054 GMT. The metal fell to its lowest since Dec. 22 at $ 1,270 on Tuesday.

* US gold futures for August delivery were, however, 0.2 per cent lower at $ 1,276.10 per ounce.

* The dollar index , which measures the greenback against a basket of six major currencies, stood at 95.057, after advancing to an 11-month peak of 95.296 on Tuesday.

* China has underestimated US President Donald Trump’s resolve to impose more tariffs unless it changes its “predatory” trade practices, a White House trade adviser said on Tuesday, as Trump greatly expanded the amount of Chinese imports possibly facing new duties.

* The European Central Bank will be patient in tightening policy further, President Mario Draghi said on Tuesday, adding that market pricings for its first post-crisis rate hike were consistent with its aim to move gradually.

* It would take a sizable economic shock for the European Central Bank to reverse its decision to end bond purchases by the close of the year, Irish central bank chief Philip Lane said on Tuesday.

* North Korea’s Kim Jong Un and Chinese President Xi Jinping came to an understanding on issues that were discussed at a summit between the two leaders, including denuclearisation of the Korean peninsula, the North’s state media said on Wednesday.

* Prospects have risen for negotiations between the Taliban and the United States after Afghan President Ashraf Ghani called a ceasefire and allowed militants to roam into cities in a gamble to encourage peace talks.

* Britain’s opposition Labour Party is considering asking the Bank of England to target productivity to help boost the economy if it wins power, in what would be the most radical change to the central bank’s remit in over two decades.

* Foreign investors have pulled about $ 5.5 billion out of emerging market economies since the US Federal Reserve’s interest rate hike last week, data from the Institute of International Finance showed on Tuesday.