July 10, 2018 / 1:26 AM / 4 months ago

PRECIOUS-Gold prices inch up amid Brexit uncertainty, subdued dollar

    BENGALURU, July 10 (Reuters) - Gold prices edged up in early
Asian trade on Tuesday after hitting a two-week high in the
previous session, amid political uncertainty over Brexit and as
the U.S. dollar remained subdued.
        
    FUNDAMENTALS  
    * Spot gold        was up 0.1 percent at $1,258.12 an ounce
at 0057 GMT. The metal touched its highest since June 26 at
$1,265.87 on Monday.
    * U.S. gold futures         for August delivery were
0.1-percent lower at $1,258.70 an ounce.
    * The dollar index, which measures the greenback against a
basket of six major currencies, was steady at 94.028. It fell to
its lowest since mid-June in the previous session.       
    * Prime Minister Theresa May's foreign minister and Brexit
negotiator quit on Monday in protest at her plans to keep close
trade ties with the European Union after Britain leaves the
bloc, stirring rebellion in her party's ranks.             
    * Britain's ramshackle exit from the EU could damage
economic growth in the euro zone, European Central Bank
policymaker Ewald Nowotny said.             
    * Germany and China signed a raft of commercial accords
worth some 20 billion euros ($23.5 billion) on Monday, with
their leaders reiterating commitments to a multilateral global
trade order despite a looming trade war with the United States.
            
    * President Donald Trump suggested on Monday that China
might be seeking to derail U.S. efforts aimed at denuclearizing
North Korea, but said he was confident that North Korean leader
Kim Jong Un would uphold a pact the two agreed on last month.
            
    * The ECB will take a "wait and see" approach to any
tightening of monetary policy after it keeps negative rates on
hold through the summer of 2019, ECB Governing Council member
Ewald Nowotny said on Monday.             
    * The Bank of Japan maintained its upbeat economic
assessment for all nine regions of the country but some areas
saw companies fret about rising costs from labour shortages, a
sign that a tightening job market could constrain business
activity.             
    * Speculators raised their net long position in COMEX gold
contracts in the week to July 3, U.S. Commodity Futures Trading
Commission data showed on Monday.        
    * Holdings of SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund fell 0.18 percent to 800.77
tonnes on Monday.          
    * Canadian miner Barrick Gold Corp          and China's
Shandong Gold             on Monday said they would deepen
cooperation beyond their Argentinian joint venture, potentially
working together on acquisitions.             
    
    DATA AHEAD (GMT)
   
    0130  China      Consumer prices            June
    0130  China      Producer prices            June
    0645  France     Industrial output          May
    0900  Germany    ZEW economic sentiment     July
    1000  U.S.       NFIB business optimism     June
    

 (Reporting by Karen Rodrigues in Bengaluru
Editing by Joseph Radford)
  
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