GLOBAL-PRECIOUS/:PRECIOUS-Gold hits 4-week high on weaker equities, U.S. dollar

| Jul 24, 2017, 06:25 AM IST

BENGALURU, July 24 (Reuters) – Gold touched a four-week high early on Monday, supported by weaker equities and a dip in the dollar to fresh 13-month lows due to political uncertainty in the United States. FUNDAMENTALS * Spot gold was trading up 0.1 percent at $1,255.92 per ounce at 0033 GMT. It hit a 4 week high of $1,257.18 an ounce in early trade, having risen 2.l percent last week. * U.S. gold futures for August delivery rose 0.1 percent to $1,256.00 per ounce. * Asian stocks slipped as demand for riskier assets ebbed after recent strong gains, while the euro’s near-two-year high on the European Central Bank’s seeming lack of concern about its strength left the dollar languishing near a 13-month low. * The dollar struggled near a 13-month low against a basket of major currencies on Monday as U.S. political woes dampened hopes for quick passage of President Donald Trump’s stimulus and tax reform agendas. * The White House said on Sunday that Trump was open to signing legislation toughening sanctions on Russia after Senate and House leaders reached agreement on a bill late last week. * U.S. Republican Senate leaders aim to hold a procedural vote as early as Tuesday to take up legislation to repeal or replace Obamacare, but it remained unclear which version of the bill senators would vote on. * The president’s oldest son, Donald Trump Jr., has added a lawyer with congressional experience to his legal team, the lawyer told Reuters on Sunday. * Hedge funds and money managers increased their net long position in COMEX gold for the first time in six weeks in the week to July 18, U.S. Commodity Futures Trading Commission data showed on Friday. * Gold demand in Asia eroded last week due to higher prices with a seasonal slowdown denting the lure for the precious metal in second-biggest consumer India. * Growth in Japan’s manufacturing activity slowed for the second straight month in July, a preliminary private survey showed on Monday, as export demand stagnated. DATA AHEAD 0700 France Flash Composite PMI July 0730 Germany Flash Composite PMI July 0800 Euro Zone Flash Composite PMI July 1345 U.S. Markit Flash Composite PMI July 1400 U.S. Existing Home Sales June (Reporting by Nithin Prasad in Bengaluru; Editing by Richard Pullin)

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