Gold eases as investors book profits, dollar firms
By Asha Sistla (Reuters) - Gold eased on Wednesday as the U.S. dollar strengthened and as investors locked in profit following a more than 1% jump in the last session, but uncertainty over the U.S.-China trade dispute and the global economy kept safe-haven bullion near a multi-year peak. Spot gold fell 0.1% to $1,541.20 per ounce at 1:36 p.m
By Asha Sistla
(Reuters) - Gold eased on Wednesday as the U.S. dollar strengthened and as investors locked in profit following a more than 1% jump in the last session, but uncertainty over the U.S.-China trade dispute and the global economy kept safe-haven bullion near a multi-year peak.
U.S. gold futures
"We aren't seeing any additional tensions. A lot of the news - the trade war and economic concerns - has been factored in by the market over the last few days," said David Meger, director of metals trading at High Ridge Futures, adding profit-taking following the rally in response to a firmer dollar was weighing on gold.
The dollar <.DXY> rose 0.2%, making gold more expensive for holders of other currencies, while U.S. stock markets moved into positive territory.
However, sentiment in wider markets remained fragile due to a sharper inversion in the U.S. Treasury yield curve, signalling a possible recession, and the lack of clarity on the U.S.-China trade front, which kept interest for safe havens intact. [USD/] [US/]
"I do not see this (drop in gold prices) lasting for long as traders seem to be trying to buy dips in the precious metals right now and with the yield curve and the U.S. Federal Reserve's (current stance), expect that dip to be bought up fairly quickly," said Bob Haberkorn, senior market strategist at RJO Futures.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.
Federal funds futures implied traders saw a 91% chance of a 25-basis-point rate cut by the U.S. central bank next month, and a 100-basis-point cut within 2020.
Markets also kept a close eye on Britain's planned exit from the European Union, with concerns of a hard Brexit heightened after British Prime Minister Boris Johnson said he will suspend parliament for more than a month before Brexit.
Elsewhere, spot silver
(For a graphic on 'Gold and silver spot price performance in 2019', click https://fingfx.thomsonreuters.com/gfx/editorcharts/GLOBAL-PRECIOUS/0H001QESF839/eikon.png)
"There is not much at present to suggest that the demand for gold and silver might abate," Commerzbank analysts wrote in a note.
(Reporting by Asha Sistla and Arpan Daniel Varghese in Bengaluru; Editing by Bernadette Baum)
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.