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PRECIOUS-Gold prices rangebound as strong U.S. data fuels risk-on sentiment

Published 20/01/2020, 02:57
© Reuters.  PRECIOUS-Gold prices rangebound as strong U.S. data fuels risk-on sentiment
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Jan 20 (Reuters) - Gold traded in a tight range on Monday as

strong U.S. economic data fuelled investors' appetite for

riskier assets and dented the metal's safe-haven appeal.

FUNDAMENTALS

* Spot gold XAU= ticked up 0.1% to $1,558.47 per ounce by

0134 GMT, after a near 0.4% drop last week. U.S. gold futures

GCv1 were down 0.1% to $1,558.10.

* Asian stocks surged close to a 20-month high, supported by

an extended rally in global stocks on Wall Street and solid U.S.

economic data. MKTS/GLOB

* U.S. homebuilding surged to a 13-year high last month as

activity increased across the board, while production at

factories increased for a second straight month, data showed on

Friday. * U.S. President Donald Trump sought on Sunday to assure

American farmers and ranchers hit by a protracted tariff war

with China that a trade agreement he signed with Beijing will

lead to major purchases of U.S. agricultural products.

* Chinese Vice Premier Liu He said Beijing and Washington

signing the Phase 1 deal had created a beneficial condition for

future Sino-U.S. relations, according to a state media Xinhua

report. * Philadelphia Federal Reserve Bank President Patrick Harker

said on Friday that a robust labour market was boosting consumer

confidence and lifting the U.S. economy, despite headwinds such

as a global slowdown and trade uncertainty. * The Turkish central bank said on Saturday it had decreased

the upper limit of holding standard gold to 20% from 30% of lira

reserve requirements in a move to support financial stability

and bring out gold savings into the economy. * Speculators cut their bullish positions in COMEX gold

contracts in the week to Jan. 14, data showed. CFTC/

* Holdings of the world's largest gold-backed

exchange-traded fund SPDR Gold Trust GLD rose 2.20% to 898.82

tonnes on Friday. GOL/ETF

* Physical gold purchases gathered steam ahead of the Lunar

New Year celebrations in China and Singapore, while demand in

India dwindled last week, encouraging retailers to offer more

discounts. GOL/AS

* Palladium XPD= was flat at $2,479.73 an ounce. The

auto-catalyst metal hit a record high of $2,537.06 on Friday.

* A squeeze in ready availability of automotive metal

palladium has driven up already record-high prices by 25% in

just two weeks, accelerating a four-year rally and stoking

expectations for further gains, analysts said. * Silver XAG= edged higher by 0.2% to $18.03 per ounce,

while platinum XPT= rose 0.6% to $1,023.55.

DATA/EVENTS (GMT)

0700 Germany Producer prices MM, YY Dec

-- Japan Bank of Japan holds monetary policy meeting

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