PRECIOUS-Gold rises as weak U.S. data fuels global slowdown worries

Published 03/10/2019, 02:42
Updated 03/10/2019, 02:50
© Reuters.  PRECIOUS-Gold rises as weak U.S. data fuels global slowdown worries
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Oct 3 (Reuters) - Gold prices extended their gains on

Thursday as weaker-than-expected U.S. jobs data reinforced

global economic slowdown fears and raised expectations of

further monetary policy easing by the U.S. Federal Reserve.

FUNDAMENTALS

* Spot gold XAU= was up 0.1% at $1,500.59 per ounce at

0105 GMT. Prices rose 1.4% on Wednesday, the biggest one-day

percentage gain since Aug. 23.

* U.S. gold futures GCv1 were down 0.1% at $1,506.4 an

ounce.

* The dollar nursed losses amid signs of a slowdown in U.S.

economic growth and a deepening of global trade tensions. USD/

* Asian stocks tumbled on Thursday after New York markets

slumped overnight after the United States opened a new trade war

front by saying it will impose tariffs on $7.5 billion of goods

from the European Union. MKTS/GLOB

* The Trump administration put 25% tariffs on French wine,

Italian cheese and single-malt Scotch whisky in retaliation for

European Union subsidies on large aircraft. * The ADP National Employment Report on Wednesday showed

private payrolls growth in August was not as strong as

previously estimated, and said "businesses have turned more

cautious in their hiring," with small enterprises becoming

"especially hesitant." * New York Federal Reserve Bank President John Williams said

on Wednesday that while the U.S. economy looked to be in a

"favorable place" when viewed through the rearview mirror, the

outlook through the windshield ahead was "mixed." * Germany's leading economic institutes on Wednesday slashed

their growth forecasts for Europe's biggest economy for this

year and next, blaming weaker global demand for manufacturing

goods and increased business uncertainty linked to trade

disputes. * British Prime Minister Boris Johnson made a final Brexit

offer to the European Union on Wednesday, pitching a possible

compromise for a last-minute exit deal that was cautiously

welcomed by the EU though the two sides still remain far apart.

* SPDR Gold Trust GLD , the world's largest gold-backed

exchange-traded fund, said its holdings rose 0.32% to 923.76

tonnes on Wednesday from 920.83 tonnes on Tuesday.

DATA AHEAD (GMT)

0755 Germany Markit services PMI and Comp final PMI for Sept

0800 EU Markit PMI for Sept

1230 US Initial jobless claims for week of Sept 28

1345 US Markit PMI for Sept

1400 US Factory orders for August

1400 US ISM non-manufacturing PMI for Sept

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