Gold drops as equities surge, but eyes third weekly gain
By Eileen Soreng (Reuters) - Gold fell on Friday as stocks and the dollar firmed, but fears of a slowing global economy and lack of clarity on the U.S.-China trade war kept bullion on track for a third straight weekly gain. Spot gold was down 0.5% at $1,514.70 per ounce as of 1:42 p.m. EDT (1751 GMT), but is up over 1% so far this week
By Eileen Soreng
(Reuters) - Gold fell on Friday as stocks and the dollar firmed, but fears of a slowing global economy and lack of clarity on the U.S.-China trade war kept bullion on track for a third straight weekly gain.
U.S. gold futures
"The dollar index is strengthening quite a bit, equity futures are coming back. ... We're going back a bit to riskier assets," said Phillip Streible, senior commodities strategist at RJO Futures, adding that gold could also be seeing some profit taking.
Hopes for more official economic stimulus for the economy and the easing of a bond market rally drove a broad rise in U.S. stocks on Friday, as a bruising week for markets drew to a close. [.N]
Meanwhile, the dollar index <.DXY>, which measures the greenback against a basket of six major currencies, was up 0.1% after hitting a two-week high. [USD/]
"On the daily charts gold still looks good, but we've have to get above that $1,546 in order to reignite new longs into the market," Streible said.
Bullion has risen more than $100 since the beginning of the month amid falling global bond yields, heightened trade tensions and a slew of disappointing economic data globally.
Earlier this week, 10-year Treasury yields dropped below the two-year yield for the first time in 12 years. Curve inversion is widely considered a warning that the economy is headed for recession. [US/]
"There are lots of demand factors and drivers that are making the incremental gold buyer keep their eyes on the gold market," said Michael Matousek, head trader at U.S. Global Investors.
"I anticipate gold pulling into about the $1,460 level. ... It's still not breaking trend and that'd probably be a good level for people to start accumulating."
U.S. President Donald Trump said on Thursday he believed China wanted to make a trade deal and that the dispute would be fairly short.
Beijing had vowed to counter the latest tariffs on Chinese goods but called on Washington to meet it halfway on a potential deal.
Investors will now focus on the U.S. Federal Reserve's annual symposium next week for further hints on monetary easing.
On the technical side, spot gold may fall into a range of $1,483-$1,503 per ounce, according to Reuters technical analyst Wang Tao.
(Reporting by Eileen Soreng and Nallur Sethuraman in Bengaluru; Editing by Tom Brown and Richard Chang)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.