August 6, 2018 / 1:22 AM / 4 months ago

PRECIOUS-Gold extends recovery as dollar steadies

    BENGALURU, Aug 6 (Reuters) - Gold prices held onto the last
session's gains early on Monday, extending a rally from a
17-month low, as the U.S. dollar traded largely steady.        
    
    FUNDAMENTALS  
    * Spot gold        was up 0.1 percent at $1,214.76 an ounce
at 0056 GMT, building on its 0.5 percent gain on Friday. The
metal had also hit its lowest since March 2017 at $1,204 an
ounce in the previous session. 
    * U.S. gold futures         were little changed at $1,223.4
an ounce.
    * The dollar index       , which measures the greenback
against a basket of six major currencies, was up 0.1 percent at
95.243.  
    * U.S. job growth slowed more than expected in July as
employment in the transportation and utilities sectors fell, but
a drop in the unemployment rate suggested that labor market
conditions continued to tighten.             
    * China proposed retaliatory tariffs on $60 billion worth of
U.S. goods ranging from liquefied natural gas (LNG) to some
aircraft on Friday, as a senior Chinese diplomat cast doubt on
prospects of talks with Washington to solve their bitter trade
conflict.             
    * China's central bank said it would require banks to keep
reserves equivalent to 20 percent of their clients' foreign
exchange forwards positions from Monday, in a move to stabilise
the yuan currency.             
    * North Korea and the United States on Saturday sparred over
an agreement reached at a landmark summit in June for the Asian
country to end its nuclear program, as Washington called for
maintaining sanctions pressure against Pyongyang, which in turn
said it was alarmed by U.S. intentions.             
    * Bank of England Governor Mark Carney said on Friday
Britain faces an "uncomfortably high" risk of leaving the
European Union with no deal, comments that drove sterling to an
11-day low against the dollar.             
    * Business activity in the euro zone lost some momentum at
the start of the third quarter, hampered by a drop in new orders
that sapped optimism in the private sector, a survey showed on
Friday.             
    * Myanmar could export as much as 20 tonnes of gold in 2019
after the Southeast Asian country earlier this year permitted
exports of the precious metal for the first time in five
decades, a senior industry official said on Saturday.
            
    * SPDR Gold Trust      , the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.26 percent to
794.90 tonnes on Friday from 796.96 tonnes on Thursday.
            
    * Hedge funds and money managers increased their bearish
position in COMEX gold contracts to another record in the week
to July 31, U.S. Commodity Futures Trading Commission (CFTC)
data showed on Friday.             
    
    DATA AHEAD (GMT)
    
    0600  Germany     Industrial orders                 Jun
    0830  Euro zone   Sentix index                      Aug
    1400  U.S.        Employment trends                 Jun

 (Reporting by Apeksha Nair in Bengaluru; Editing by Amrutha
Gayathri)
  
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