August 30, 2019 / 1:58 AM / 17 days ago

PRECIOUS-Gold prices inch down on positive signs for trade talks

    Aug 30 (Reuters) - Gold prices dipped on Friday as the
United States and China indicated they may resume talks to
resolve their protracted trade conflict, putting the metal on
track for a small weekly loss despite a strong month.
                        
    FUNDAMENTALS
    * Spot gold fell 0.2% to $1,525.06 per ounce, as of
0112 GMT.
    * For the month, bullion is set to rise 7.9%. However, for
the week, it's headed for a mild loss of 0.1%, following four
weeks of gains.
    * U.S. gold futures were also down 0.2% at $1,534.50
an ounce.
    * China's commerce ministry said on Thursday Beijing and
Washington were discussing the next round of face-to-face talks
scheduled for September, but added it was important for
Washington to cancel a tariff increase.
    * U.S. President Donald Trump also said some discussions
were taking place on Thursday, ahead of a looming deadline for
additional U.S. tariffs on Sept. 1.    
    * Wall Street and Asian stock markets rose in response to
the potential softening in the Sino-U.S. trade war.
    * The Trump administration on Wednesday made official its
extra 5% tariff on $300 billion in Chinese imports and set
collection dates of Sept. 1 and Dec. 15.
    * The dollar index, which measures the greenback
against a basket of six major currencies, touched a peak last
hit on Aug. 1.
    * Christine Lagarde, the European Central Bank's next
president, said on Thursday the bank still has room to cut
interest rates if needed, although this may pose financial
stability risk.
    * Markets are fully priced in for a quarter-point cut in
interest rates by the U.S. Fed next month, and over 100 basis
points of easing by the end of next year.
    * Data on Thursday showed that German inflation slowed in
August and unemployment rose, cementing expectations of a new
ECB stimulus package next month.
    * Investors are also focused on a string of economic
releases due over the weekend including China's official
manufacturing survey which would provide a good gauge of the
real impact from the Sino-U.S. trade war.
    * SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings fell 0.2% to 880.36
tonnes on Thursday from Wednesday.
    * U.S. Treasury yields rose overnight with the benchmark
10-year Treasury climbing up from a three-year low touched
earlier this week.
    
    DATA AHEAD (GMT)    
  0600  UK           Nationwide house price y/y
  0645  France       CPI (EU Norm) Prelim y/y
  0900  Euro zone    Unemployment Rate
  1200  India        GDP Quarterly y/y
  1230  US           Consumption, adjusted m/m
 
    

 (Reporting by Harshith Aranya in Bengaluru; editing by Richard
Pullin)
  
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