June 25, 2018 / 1:28 AM / in 4 months

PRECIOUS-Gold prices climb as dollar weakens on EU-U.S. trade woes

    BENGALURU, June 25 (Reuters) - Gold prices edged up on
Monday as a buoyant euro kept the dollar off its 11-month highs,
with trade issues between the United States and the European
Union further supporting the bullion.
    
    FUNDAMENTALS  
    * Spot gold        was up 0.3 percent at $1,271.79 an ounce,
as of 0059 GMT. 
    * U.S. gold futures         for August delivery were 0.2
percent higher at $1,273.60 per ounce.
    * U.S. President Donald Trump on Friday threatened to
escalate a trade war with Europe by imposing a 20 percent tariff
on all U.S. imports of European Union-assembled cars. 
             
    * The euro on Monday kept the dollar away from an 11-month
high, with trade issues between the United States and the
European Union seen deciding the near-term direction for the
currencies. The single currency was lifted after Friday's upbeat
German and French business activity data and fresh assurances by
Italian politicians that their nation would not leave the single
currency.       
    ** A weaker greenback makes dollar-denominated gold cheaper
for holders of other currencies.
    * The European Union will respond to any U.S. move to raise
tariffs on cars made in the bloc, a senior European Commission
official said, the latest comments in an escalating trade row.
             
    * The Bank for International Settlements (BIS) urged the
world's top central banks to keep lifting interest rates on
Sunday, but warned escalating trade tensions between the United
States and China could turn into a dangerous downward spiral.
            
    * The European Central Bank will end its asset purchases by
year-end as scheduled, according to a Reuters poll of economists
who said the risk bond-buying will continue into next year was
low, even with growth likely to slow and inflation stay tame. 
            
    * Japan's core inflation remained subdued in May, yet again
highlighting how far off the central bank is in hitting its 2
percent price goal despite over five years of massive stimulus. 
            
    * U.S. protectionism is self-defeating and a "symptom of
paranoid delusions" that must not distract China from its path
to modernisation, Chinese media said on Friday as Beijing kept
up with its war of words with Washington while markets wilted.
            
    * The Iranian rial plunged to a record low against the U.S.
dollar on the unofficial market on Sunday, continuing its slide
amid fears of returning U.S. sanctions after President Donald
Trump in May withdrew from a deal on Tehran's nuclear programme.
            
    * Speculators trimmed their net long position in COMEX gold
to the weakest position in 2-1/2 years in the week to June 19,
U.S. Commodity Futures Trading Commission (CFTC) data showed on
Friday.        
    
    DATA AHEAD (GMT)
     
    0800  Germany    Ifo business climate         June
    1230  U.S.       National activity index      May
    1400  U.S.       New home sales               May

 (Reporting by Karen Rodrigues in Bengaluru, Editing by Sherry
Jacob-Phillips)
  
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