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PRECIOUS-Gold steady as Sino-U.S. trade tensions ease

Published 28/10/2019, 02:30
© Reuters.  PRECIOUS-Gold steady as Sino-U.S. trade tensions ease
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Oct 28 (Reuters) - Gold was unchanged on Monday, after

climbing nearly 1% in the previous session, as trade tensions

between the United States and China eased, while a strong dollar

also capped gains.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,504.60 per ounce as of

0059 GMT. U.S. gold futures GCcv1 were up 0.1% at $1,507.40

per ounce.

* U.S. President Donald Trump on Friday said the U.S. was

doing very well in its trade negotiations with China and that

China wants to make a deal "very badly." * Both U.S. and China have imposed a series of tit-for-tat

tariffs over the past 15 months, stirring global recessionary

fears and driving gold prices over 17% higher this year.

* The trade war between the two countries has hit financial

markets and forced most major central banks to cut interest

rates this year.

* Federal fund futures imply that traders see a 90.4% chance

for a 25 basis point rate cut by the U.S. central bank in its

month-end monetary policy meeting. FEDWATCH

* The dollar index .DXY , which measures the greenback

against a basket of other currencies, rose nearly 0.6% last

week.

* Asian shares rose on Monday to a three-month high as

appetite for riskier assets got a boost from hopes of a

U.S.-China trade deal being sealed as soon as next month.

MKTS/GLOB

* Hong Kong anti-government protesters set fire to shops and

hurled petrol bombs on Sunday, police said, after riot police

fired tear gas, water cannon and rubber bullets to disperse

thousands in the Tsim Sha Tsui harbour-front hotel district.

* The European Union agreed on Friday to London's request

for a Brexit deadline extension but set no new departure date,

giving Britain's divided parliament time to decide on Prime

Minister Boris Johnson's call for a snap election. * Hedge funds and money managers raised their bullish

positions in COMEX gold and silver contracts in the week to Oct.

22, the U.S. Commodity Futures Trading Commission (CFTC) said on

Friday. * Holdings of the largest gold-backed exchange-traded-fund

(ETF), New York's SPDR Gold Trust GLD and the largest

silver-backed ETF, New York's iShares Silver Trust SLV , have

remained unchanged on Thursday from Wednesday. GOL/ETF

DATA/EVENTS (GMT)

0800 EU Money-M3 Annual Growth Sept

1100 UK CBI Distributive Trades Oct

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