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PRECIOUS-Gold slips as new U.S. tariffs on China lifts dollar

Published 2018-09-17, 08:57 p/m
© Reuters.  PRECIOUS-Gold slips as new U.S. tariffs on China lifts dollar
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BENGALURU, Sept 18 (Reuters) - Gold prices inched lower early on Tuesday, after rising 0.6 percent in the previous session, as the dollar rose after the United States imposed a new round of tariffs on Chinese imports, aggravating global trade worries.

FUNDAMENTALS

* Spot gold XAU= fell 0.1 percent at $1,199.20 an ounce as of 0027 GMT.

* U.S. gold futures were down 0.2 percent at $1,203.90.

* U.S. President Donald Trump on Monday imposed 10 percent tariffs on about $200 billion worth of Chinese imports. Trump also warned that if China takes retaliatory action against U.S. farmers or industries, "we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."

* The months-long trade rift between Washington and Beijing has prompted investors to buy the U.S. dollar in the belief that the United States has less to lose from the dispute.

* The dollar index .DXY , which measures the greenback against a basket of currencies, was up 0.1 percent at 94.582.

* China's yuan CNH=D4 was 0.25 percent lower at 6.8862 per dollar in offshore trade.

* Gold prices have declined over 12 percent from April amid intensifying global trade tensions and under pressure from rising U.S. interest rates.

* Hedge funds and speculators have swung sharply toward pricing in higher rates and yields at the short end of the curve, a sign that they are backing down and now think the Fed will stick to the pace and path of rate hikes it has long flagged. Bond traders are increasing bets the Federal Reserve will raise U.S. short-term interest rates into 2019 as the jobs market tightens and with inflation seen climbing above its 2 percent goal. South Africa's competition watchdog on Monday approved the takeover of platinum producer Lonmin LMI.L , LONJ.J by Sibanye-Stillwater SGLJ.J but imposed conditions to limit job losses. Russia raised gold holdings by 28.367 tonnes to 1,998.538 tonnes in 2018 August, International Monetary Fund data showed. Three South African unions have signed a three-year wage deal with AngloGold Ashanti ANGJ.J , potentially inching the country's gold industry closer to ending a standoff over pay. India may impose import duty on gold, local media reported on Monday. AHEAD (GMT)

1400 U.S. NAHB housing market index

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