• Gold prices inched higher as hopes of a swift Brexit deal boosted the sterling and the euro against the dollar, making bullion cheaper for buyers in Britain and the euro zone.
• Michel Barnier, the European Union’s chief negotiator, said an agreement on Britain’s exit from the bloc was “realistic in six to eight weeks.”
• Spot gold gained 0.1 percent at $1,195.91 per ounce by 1:41 p.m. EDT (1741 GMT), while U.S. gold futures December delivery settled down 60 cents, or 0.1 percent, at $1,199.80 per ounce.
• Gold has tumbled more than 12 percent from a high of $1,365.23 in April as trade disputes, weak emerging market currencies and rising U.S. interest rates have driven a dollar rally.
• Gold prices briefly dipped on Monday as investors sought safety in the dollar on trade tensions, said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
• U.S. President Donald Trump said on Friday he was ready to impose tariffs on virtually all Chinese imports, prompting a threat by China to retaliate.
• China’s yuan fell again on Monday as investors assumed that the United States had less to lose from a trade war than China, the world’s biggest gold consumer.
• Also supporting the dollar was strong U.S. jobs data on Friday, which suggested that the Federal Reserve would continue to raise interest rates.
• Higher rates increase bond yields, making non-yielding bullion less attractive, and tend to boost the dollar. A rate increase is expected this month.
• Speculators have ramped up bets on lower prices, with their net short position in Comex gold the biggest since the data were first compiled in 2006.
• Until spot gold prices hold above the $1,220-$1,235 range, they would not rise, said Tyler Richey, co-editor of the Sevens Report.
• Holdings of gold-backed exchange-traded funds are down almost 5 million ounces, or 8.6 percent, from a May high.
• “If we get some sort of favorable resolution or at the very least a solid step forward in trade negotiations, that could help initiate that dollar pullback,” supporting gold, Richey added.
• Among other precious metals, spot silver was up 0.5 percent at $14.17 per ounce, while platinum rose 0.6 percent at $783.49 and palladium lost 0.3 percent at $977.50.
Reference: Reuters
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