Sept 11 (Reuters) - Gold prices edged up on Wednesday, but
hovered near a four-week low hit in the previous session as risk
appetite improved amid hopes of an interest rate cut by the
European Central Bank and fiscal stimulus measures from Germany,
Europe's largest economy.
FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $1,491.60 per ounce, as of
0120 GMT. In the previous session, prices fell to their lowest
since Aug. 13 at $1,483.90.
* U.S. gold futures GCv1 were flat at $1,499.3 an ounce.
* The dollar index was steady .DXY , while Asian stock
markets held firm and bond yields rose on Wednesday. USD/
MKTS/GLOB
* A senior White House adviser tamped down expectations on
Tuesday for the next round of U.S.-China trade talks, urging
investors, businesses and the public to be patient about
resolving the trade dispute between the world's two largest
economies. * As the fallout from the U.S.-China trade war broadens,
Bank of Japan policymakers are more open to discussing the
possibility of expanding stimulus at their board meeting on Sept
18-19, sources familiar with their thinking say. * Position unwinding was also apparent in bond markets ahead
of key central bank policy announcements including the European
Central Bank on Thursday and the U.S. Federal Reserve next week.
* Deutsche Bank said on Tuesday that it now forecasts
another 100 basis points of rate cuts and see growth falling to
below 1.5% by mid-2020, assuming there is no escalation in the
trade war between the United States and China. * Germany's 30-year government bond yield rose into positive
territory on Tuesday for the first time in over a month, lifted
by expectations for fiscal stimulus and uncertainty over whether
the ECB will launch asset purchases this week. * German Chancellor Angela Merkel said on Tuesday her
government was sticking to its balanced budget policy, tempering
expectations for fiscal stimulus in Europe's largest economy.
* The recent drop in long-term bond yields below shorter
ones in key sovereign bond markets is not "a vote of confidence"
in the economic outlook, the head of the Bank of England said on
Tuesday. * South Africa's main platinum mining union said it had
formally declared that wage talks with Anglo American Platinum
(Amplats) AMSJ.J and Sibanye-Stillwater SGLJ.J were
deadlocked, raising the possibility of strike action if the
issue cannot be resolved.