Asia FX dithers as dollar steadies before Powell speech; yen muted after CPI data
* SPDR Gold holdings jump 1% on Wednesday
* Gold may gain further to $1,524/oz - technicals
*
(Updates prices)
By Eileen Soreng
Aug 8 (Reuters) - Gold eased slightly on Thursday after a
surge above $1,500 for the first time since April 2013 in the
previous session in response to U.S.-China trade uncertainties
and growing signs of an economic slowdown.
Spot gold XAU= was down 0.2% at $1,497.67 per ounce at
1212 GMT.
U.S. gold futures GCcv1 fell 0.7% to $1,509.30 per ounce.
"Given how aggressively gold has gained in the past few
days, it's only natural for prices to retrace before pushing
back higher," FXTM analyst Lukman Otunuga said.
The metal has risen more than 17% so far this year, and
about $100 over the past week, in a stellar run propelled by
trade tensions and an increasingly dovish shift in policy by
central banks amid fears of slowing growth.
"The situation has not changed. Political tensions continue
to exist, the trade war is still going on, so I would not be
surprised to see higher prices" said Afshin Nabavi, senior vice
president at precious metals trader MKS SA, adding prices could
move in a $1,475- $1,530 range in the absence of any further
catalysts.
Global stock markets enjoyed a tentative recovery following
sharp falls in response to an escalation in the trade war, when
China allowed the yuan to weaken beyond the key 7 yuan per
dollar mark, viewed as a retaliation to a U.S. threat of
additional tariffs. MKTS/GLOB
"Any reconciliation signal between Trump and China could
send investors back to riskier assets," ActivTrades analyst
Carlo Alberto De Casa said in a note.
But other factors, including a lower interest rate
environment, was likely to keep safe-haven bullion supported,
analysts said.
On Thursday, the Philippine central bank cut its benchmark
lending rates, following similar moves by New Zealand, India and
Thailand, among others.
Following the U.S. Federal Reserve's rate cut last week,
interest rates futures suggest traders are betting the Fed will
cut rates three more times by the year-end to avert a recession.
FEDWATCH In another tailwind for gold, U.S. 10-year Treasury yields
US10YT=RR dropped further below three-month rates, an
inversion that has reliably predicted recessions in the past.
US/
Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 1.02% to 845.42 tonnes on
Wednesday. GOL/ETF
Gold may gain further to $1,524, as it has cleared
resistance at $1,497, according to Reuters technical analyst
Wang Tao.
Elsewhere, silver XAG= dipped 0.6% to $17.01 per ounce,
after hitting a more than one-year high in the previous session.
Platinum XPT= fell 0.5% to $857.54, while palladium XPD=
rose 0.6% to $1,422.96 an ounce.
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