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PRECIOUS-Gold prices climb as U.S. bond markets warn of recession

Published 2019-08-14, 09:24 p/m
© Reuters.  PRECIOUS-Gold prices climb as U.S. bond markets warn of recession
XAU/USD
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DX
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GC
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GLD
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MIWD00000PUS
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DXY
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Aug 15 (Reuters) - Gold prices rose on Thursday as an inverted U.S. bond yield curve alarmed investors about rising recession risks, while the protracted Sino-U.S. trade war added to fears of a global economic slowdown, increasing the appeal for safe-haven assets.

FUNDAMENTALS

* Spot gold XAU= was up 0.3% at $1,520.19 per ounce at 0100 GMT.

* U.S. gold futures GCcv1 fell 0.1% to $1,526.80 an ounce.

* The U.S. Treasury yield curve US2US10=TWEB temporarily inverted on Wednesday for the first time since 2007, an indication that is widely seen by investors as a sign of an upcoming U.S. recession. USD/

* Economic data from China and Germany suggested a slowing global economy, hit by the unabating U.S.-China trade war, Brexit and geopolitical tensions. On Wednesday, U.S. officials said China has made no trade concessions after U.S. President Donald Trump postponed the 10% tariffs on over $150 billion worth of Chinese imports, the latest sign that efforts to reach a trade deal were going nowhere. The MSCI All Country World Price index .MIWD00000PUS , which incorporates readings of 49 equity markets across the world, shed 2.1% to its lowest level since June 4. MKTS/GLOB

* The dollar index .DXY , which measures its value against a basket of six major currencies, was little changed after a 0.2% gain on Wednesday. USD/

* Investors are focused on the Federal Reserve's annual symposium next week. Traders see an about 74% chance of a 25 basis-point rate cut by the Fed this September. FEDWATCH

* SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.91% to 844.29 tonnes on Wednesday. GOL/ETF

DATA AHEAD (GMT)

* 0130 Australia Employment

July

* 0830 UK

Retail Sales MM, YY

July

* 1000 EU

Reserve Assets Total

July

* 1230 US

Initial Jobless Claims

Weekly

* 1230 US

Philly Fed Business Index August

* 1230 US

Retail Sales MM

July

* 1315 US

Industrial Production MM July

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