November 14, 2019 / 2:16 AM / a month ago

PRECIOUS-Gold inches down as hawkish Fed weighs on safe-haven demand

    Nov 14 (Reuters) - Gold prices edged down on Thursday as
bullion's safe-haven appeal was dented by hawkish signals from
the U.S. Federal Reserve on further interest rate cuts, citing
growth in the U.S. economy, a strong labour market and steady
inflation.
    
    FUNDAMENTALS
    * Spot gold        was down 0.1% at $1,461.50 per ounce, as
of 0141 GMT, while U.S. gold futures        were flat at
$1,462.40 per ounce.
    * U.S. Federal Reserve Chair Jerome Powell said the negative
interest rates sought by President Donald Trump were not 
appropriate for the  U.S. economy right now.             
    * The Fed has cut interest rates thrice this year to help
sustain U.S. growth. A lower interest rate trims the opportunity
cost of holding non-yielding bullion.
    * However, gold retained some shine as media said U.S.-China
trade negotiations had 'hit a snag' over farm purchases, with
China not wanting a deal that looks one-sided in the favour of
the United States.             
    * Adding fuel to the concern, Trump threatened to jack up
tariffs on Chinese goods if the countries  fail to reach a trade
deal, which could raise the price of cellphones, laptops, and
toys less than two weeks before Christmas.             
    * The months-long Sino-U.S. trade war has brought turmoil to
financial markets and sparked fears of a global economic
slowdown, pushing up gold prices more than 13% this year.
    * Putting a floor under prices, anti-government protesters
in Hong Kong dug in at university campuses in the Chinese-ruled
city, setting the stage for further confrontations as police
said violence was at a "very dangerous, and even deadly, level".
            
    * Asian stocks clung to tight ranges on Thursday as
investors awaited key Chinese data for clues on how much the
trade war between Beijing and Washington has hit growth in the
world's second-largest economy.           
    * SPDR Gold Trust GLD, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.04% to 896.77
tonnes on Wednesday from 897.09 tonnes the previous session.
         
    
DATA/EVENTS (GMT)
0630   India       WPI Inflation YY             Oct
0700   Germany     GDP Flash QQ SA              Q3
0700   Germany     GDP Flash YY NSA             Q3
0745   French      CPI (EU Norm) Final MM, YY   Oct
0930   UK          Retail Sales, MM, YY         Oct
0930   UK          Retail Sales Ex-Fuel MM      Oct
1000   EU          GDP Flash Estimate QQ, YY    Q3
1330   US          Initial Jobless Claims       Weekly

 (Reporting by Diptendu Lahiri in Bengaluru, Editing by Sherry
Jacob-Phillips)
  
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