July 26, 2019 / 1:59 AM / 4 months ago

PRECIOUS-Gold ticks up ahead of U.S. GDP data; set for weekly drop

July 26 (Reuters) - Gold prices rebounded on Friday from a sharp decline in the previous session, while investors awaited U.S. economic growth data due later in the day that could provide clues about the Federal Reserve’s monetary policy meeting.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,417.55 per ounce, as of 0130 GMT.

* The metal has lost 0.5% so far this week, putting it on track for its first weekly decline in three.

* U.S. gold futures edged 0.2% higher to $1,417.10 an ounce.

* Gold fell on Thursday after data showed that weekly U.S. jobless claims number fell to a three-month low last week, pointing to strength in the labor market, while new orders for key U.S.-made capital goods surged 1.9 % in June.

* Market participants are now looking ahead to the U.S. central bank’s July 30-31 monetary policy meeting where it is expected to trim its interest rate by at least 25 basis points.

* Meanwhile, against a basket of six major currencies, the dollar index was relatively unchanged after hitting a two-month high in the previous session.

* U.S. Treasury yields following rosier-than-expected economic sentiment from the European Central Bank.

* The ECB signalled its intention to explore monetary easing, but left interest rates unchanged, and bank President Mario Draghi struck a more upbeat tone on the economy than investors expected.

* Britain has started sending a warship to accompany all British-flagged vessels through the Strait of Hormuz, a change in policy announced on Thursday after the government previously said it did not have resources to do so.

* U.S. Secretary of State Mike Pompeo said in a television interview on Thursday that he would go to Iran for talks if it was necessary, amid the tensions between Tehran and Washington.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.36% to 819.32 tonnes on Thursday from 822.25 tonnes on Wednesday.

DATA AHEAD

* 1030 Russia Central Bank Key Rate July

* 1230 US GDP Advance Q2 (Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips)

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