• Gold prices drifted higher in Asian trade on Wednesday, extending gains into a second session, as the U.S. dollar softened against China’s yuan and the euro.
• Spot gold rose 0.2 percent to $1,213.02 an ounce at 0640 GMT, after rising 0.4 percent in the previous session.
• U.S. gold futures were also up 0.2 pct at $1,220.80 per ounce.
• “The dollar-CNH is a bit under pressure this morning and we’re seeing some buying on the back of that,” a Hong Kong-based trader said.
• China’s yuan held firm near a one-week high versus the dollar on Wednesday, following firmer equities, extending its rise after the central bank last week took steps to curb the currency’s decline.
• Against a basket of currencies, the dollar eased 0.1 percent as its recent rally on concerns over escalating trade tensions showed signs of fading.
• A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.
• “Gold is consolidating here for the moment. The dips on the dollar still seem to be bought so I am sceptical to call a bottom on gold,” the trader said.
• Signals are mixed for spot gold, as it seems to be stuck in a neutral range of $1,206-$1,220 per ounce, according to Reuters technicals analyst Wang Tao.
• Meanwhile, Asian shares rose on Wednesday on the back of firmer Wall Street earnings while expectations for increased Chinese stimulus helped take the edge off wider concerns about the worsening Sino-U.S. trade dispute.
• The United States will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on Aug. 23, the U.S. Trade Representative’s office said on Tuesday as it published a final tariff list targeting 279 imported product lines.
• The European Parliament has agreed to ease tough new liquidity rules for banks trading gold, marking a success for the London Bullion Market Association’s (LBMA) campaign to revise the plans.
• Among other precious metals, silver rose 0.5 percent at $15.40 an ounce. Platinum was up 0.2 percent at $827.30 per ounce, while palladium fell 0.3 percent to $903.22.
Reference: Reuters
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