November 1, 2019 / 2:05 AM / 17 days ago

PRECIOUS-Gold set for second weekly rise on trade deal uncertainties

Nov 1 (Reuters) - Gold prices were little changed on Friday as investors evaluated whether the Federal Reserve’s would continue to cut rates, but the metal was set for a second weekly gain as the uncertainty surrounding a U.S.-China trade deal boosted safe-haven appeal.

FUNDAMENTALS

* Spot gold was little changed at $1,512.54 per ounce at 0139 GMT, while U.S. gold futures were also flat at $1,514.90 per ounce. Spot gold is set to rise 0.5% this week after a 1% gain the previous week.

* Chile’s decision to cancel the Nov. 16-17 Asia-Pacific Economic Cooperation summit disrupted plans for the United States and China to sign a interim trade deal, but U.S. President Donald Trump said the two countries would soon announce a new site to sign a “Phase One” trade agreement.

* A near 16-months long trade war between the two economies has slowed global trade, stirred recession fears for some economies and roiled financial markets.

* The U.S. Federal Reserve on Wednesday lowered its policy rate by a quarter of a percentage point to a target range of 1.50% to 1.75% but signalled there would be no further reductions unless the economy takes a turn for the worse.

* But a flattening yield curve indicates market participants believe the U.S. Federal Reserve may be pausing its interest rate cuts too soon.

* The number of Americans filing applications for unemployment benefits rose slightly more than expected last week, pointing out to the concerns of an economic slowdown still existing.

* The Institute for Supply Management is due to release data from its survey of purchasing managers on later in the day.

* Asian shares fell on Friday on fresh concerns over Sino-U.S. trade prospects and ahead of U.S. economic data, while the dollar eased against major rivals.

* The dollar index against a basket of six major currencies eased slightly to 97.296.

* Holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, fell 0.19 percent on Wednesday from Tuesday.

(DATA/EVENTS) DATA/EVENTS AHEAD (GMT)

0030 Japan Jibun Bank Mfg PMI Oct

0030 South Korea IHS Markit Mfg PMI Oct

0030 Indonesia IHS Markit Mfg PMI Oct

0145 China Caixin Mfg PMI Final Oct

0400 Indonesia Inflation YY Oct

0500 India IHS Markit Mfg PMI Oct

0600 Russia Markit Mfg PMI Oct

0930 UK Markit/CIPS Mfg PMI Oct

1200 Brazil Industrial Output MM, YY Sept

1230 US Non-farm Payrolls Oct

1230 US Unemployment Rate Oct

1230 US Average Earnings YY Oct

1300 Brazil Markit Mfg PMI Oct

1345 US Markit Mfg PMI Final Oct

1400 US ISM Manufacturing PMI Oct (Reporting by Diptendu Lahiri in Bengaluru; Editing by Rashmi Aich)

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