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PRECIOUS-Gold holds firm on easing rate hike expectations

Published 2018-12-11, 08:30 p/m
© Reuters.  PRECIOUS-Gold holds firm on easing rate hike expectations
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BENGALURU, Dec 12 (Reuters) - Gold prices were steady early on Wednesday, supported by expectations of fewer rate hikes by the U.S. Federal Reserve next year, while palladium traded at a premium to gold.

FUNDAMENTALS

* Spot gold XAU= inched up 0.1 percent to $1,244.40 per ounce, as of 0115 GMT.

* U.S. gold futures GCv1 rose 0.2 percent to $1,249.9 per ounce.

* Spot palladium XPD= was up 0.2 percent at $1,246.30 per ounce. Prices climbed over 2 percent in the previous session.

* The dollar held near a one-month high against its peers on Wednesday, supported by a rebound in U.S. yields and weakness of the pound as its battering from uncertainty about Brexit continued. USD/

* Asian stock markets edged ahead as U.S. President Donald trump sounded upbeat about a trade deal with China. MKTS/GLOB

China has agreed to cut tariffs on U.S.-built cars and auto parts to 15 percent from the current 40 percent, a Trump administration official said on Tuesday, setting the stage for new talks aimed at easing the bitter trade war between the world's two largest economies. U.S. producer prices unexpectedly rose in November as increases in the costs for services offset a sharp decline for energy products, but the overall momentum in wholesale inflation appears to be slowing. An attempt to oust British Prime Minister Theresa May gathered pace on Tuesday, a day after her decision to delay a vote in parliament on her Brexit deal for fear of a rout angered many in her Conservative Party. One of the International Monetary Fund's top officials warned on Tuesday that storm clouds were gathering over the global economy and that governments and central banks might not be well-equipped to cope. Italy's coalition parties are resisting any major reduction to next year's deficit target, complicating efforts to avoid EU disciplinary action over the 2019 budget, a government source said on Tuesday. Ex-finance ministry official Shaktikanta Das took charge of the Reserve Bank of India on Tuesday, in a swift appointment expected to ease a dispute with the government as it pushes for looser credit rules ahead of a general election. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.43 percent to 763.56 tonnes on Tuesday from 760.32 tonnes on Monday. AHEAD (GMT)

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