Gold steadies as dollar, U.S. Treasury yields pare gains | Reuters
By Marcy Nicholson and Jan Harvey | NEW YORK/LONDON NEW YORK/LONDON Gold steadied on Friday, but remained below this week's three-month top as the U.S.
By Marcy Nicholson and Jan Harvey
| NEW YORK/LONDON
NEW YORK/LONDON Gold steadied on Friday, but remained below this week's three-month top as the U.S. dollar and Treasury yields came off their highs after the currency initially jumped on U.S. President Donald Trump's promise of a major tax announcement.Spot gold XAU= was up 0.02 percent at $1,230.78 an ounce by 2:24 p.m. EST (1924 GMT), while U.S. gold futures GCv1 for April delivery settled down 0.07 percent at $1,235.90. On Wednesday, spot gold reached its highest since mid-November at $1,244.67. Gold prices were on track for a second weekly gain, up 1 percent from late last Friday.The dollar .DXY pared gains against a currency basket on Friday after earlier strength from U.S. President Donald Trump's pledge to announce a major tax plan within weeks cooled some market nerves, reinvigorating dollar bulls. [FRX/]Wall Street hit record highs for a second day on hopes of the business-friendly tax cuts. [MKTS/GLBO]"The dollar puts a little pressure on gold however the strength in the equity markets and the strength in the other precious metals is lifting gold up," said Eli Tesfaye, senior market strategist for brokerage RJO Futures in Chicago, as gold prices moved into positive territory.
"It's really the intermarket relationship that's stabilizing gold right now."Silver XAG= was up 1.5 percent at $17.91 an ounce, after tapping $17.99, the highest since Nov. 11. Palladium XPD= rose 1.6 percent to $782, after rising to $786.40, the highest since Jan. 25."Both silver and palladium are up on the day as an improving China signals a better global economy and gives support to the more industrial metals of the group," said aid Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York.
Earlier in the session, however, gold prices were lower."The Trumpflation trade is back on the agenda, which is negative for gold," Commerzbank analyst Carsten Fritsch said. U.S. economic data has also stoked talk that the Federal Reserve would press ahead with U.S. interest rate hikes sooner rather than later. U.S. import prices rose more than expected in January, while initial jobless claims dropped unexpectedly last week to the lowest in nearly 43 years.
Gold is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.The major physical markets in Asia were mixed this week as Indian jewellers stocked up for wedding season, while rising prices sidelined buyers elsewhere. [GOL/AS] Platinum XPT= was down 0.6 percent at $1,006.10. (Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Mark Potter and Cynthia Osterman)
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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.