PRECIOUS-Gold gains as trade war fears weigh on dollar, equities

Published 2018-03-06, 08:29 p/m
© Reuters.  PRECIOUS-Gold gains as trade war fears weigh on dollar, equities
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March 7 (Reuters) - Gold prices inched higher earlyWednesday to their highest in a week as U.S. equities and thedollar weakened after President Donald Trump said he would pushahead with punitive tariffs on steel and aluminium imports,rekindling fears of a potential trade war.

FUNDAMENTALS

* Spot gold XAU= rose 0.1 percent to $1,335.07 per ounceat 0126 GMT after hitting $1,340.42 an ounce earlier in thesession, its highest since Feb. 26.

* U.S. gold futures GCcv1 for April delivery rose 0.1percent to $1,336.30 per ounce.

* U.S. stock futures and the dollar slumped on Wednesdayafter a key advocate for free trade in the White House announcedhis resignation, fanning fears Trump would go ahead with tariffsand risk a trade war. MKTS/GLOB USD/

* Trump's top economic adviser Gary Cohn resigned on Tuesdayafter the U.S. president said he was sticking with plans toimpose hefty tariffs on steel and aluminium imports, which somecritics have dubbed the first shot in a global trade war. The U.S. dollar will retreat further over the coming year,giving way to an ascendant euro, according to a Reuters poll ofstrategists who said five or more Federal Reserve rate riseswould be needed to significantly boost the greenback's fortunes. Feeling the pressure of sanctions, North Korea seems"sincere" in its apparent willingness to halt nuclear tests ifit held denuclearization talks with the United States, Trumpsaid on Tuesday as U.S., South Korean and Japanese officialsvoiced skepticism about any discussions. New orders for U.S.-made goods recorded their biggestdecline in six months in January and business spending onequipment appeared to be slowing after strong growth in 2017. Asian gold-backed exchange-traded funds (ETFs) added moretonnes in February than North America and Europe, reversing its2017 trend of having more flows out, the World Gold Council saidon Tuesday. AHEAD (GMT)

0745 France

Trade data

Jan

0800 China

Forex reserves

Feb

1000 Euro zone Revised GDP

Q4

1315 U.S.

ADP national employment

Feb

1330 U.S.

International trade

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1900 Federal Reserve Beige Book on economic condition

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