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PRECIOUS-Gold inches lower as focus shifts to Fed chair speech

Published 23/08/2019, 02:59
© Reuters. PRECIOUS-Gold inches lower as focus shifts to Fed chair speech
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Aug 23 (Reuters) - Gold prices slipped on Friday, but held

near the key $1,500 level amid trade uncertainties and ahead of

U.S. Fed chair's speech for clues on future rate cuts.

FUNDAMENTALS

* Spot gold XAU= edged down 0.1% to $1,496.78 per ounce as

of 0120 GMT.

* U.S. gold futures GCcv1 were down 0.2% at $1,506.30 an

ounce.

* The market is closely watching Federal Reserve Chairman

Jerome Powell's speech at the Jackson Hole seminar for clarity

on monetary policy after minutes of the U.S. central bank's July

meeting tempered hopes of aggressive rate cuts. * Underscoring divisions within the Fed, two central bank

officials said on Thursday the U.S. economy does not need more

stimulus at this point while another said he was "open-minded."

* Futures 0#FF: are still fully priced for a quarter-point

cut in rates next month, but virtually no traders expect a 50

basis-point cut. FEDWATCH

* In the U.S. bond market, the two-year, 10-year Treasury

yield curve briefly moved back into inversion overnight. It had

flashed recession red lights last Wednesday for the first time

since before the financial crisis. * Traders are also awaiting the Group of Seven summit this

weekend for clues on what additional steps policymakers may take

to boost economic growth.

* China has partially lifted restrictions on imports of

gold, bullion industry sources said on Thursday, loosening curbs

that had stopped an estimated 300-500 tonnes of the metal worth

$15-25 billion at current prices from entering the country since

May. * SPDR Gold Trust (P:GLD) GLD , the world's largest gold-backed

exchange-traded fund, said its holdings rose 0.34% to 854.84

tonnes on Thursday. GOL/ETF

DATA AHEAD (GMT)

* 1400 US Fed Chair Powell delivers remarks at the

Jackson Hole Symposium

* 1400 US New Home Sales-Units July

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