Gold inches lower as dollar gains on strong U.S. economic data

Gold prices edged lower early on Thursday as the dollar gained on positive U.S. economic data, but the yellow metal was buoyed by safe haven demand amid a standoff over North Korea.

FUNDAMENTALS

* Spot gold <XAU=> was down 0.1 percent to $1,307.20 per ounce as of 0055 GMT. U.S. gold futures for December delivery eased 0.1 percent to $1,312.70.

* Investors rediscovered a taste for the dollar and Asian shares rose on Thursday as upbeat U.S. economic news whetted appetite for riskier assets globally, even as tensions over North Korea simmered in the background. [MKTS/GLOB] [USD/]

* U.S. President Donald Trump turned his populist rhetoric to tax reform on Wednesday, calling for “pro-American” business tax cuts as a way to create jobs and telling Congress that it needs to deliver.

* The Commerce Department said its second estimate of U.S. gross domestic product showed that it increased at a 3.0 percent annual rate in the second quarter, its quickest pace in more than two years

* U.S. private-sector employers hired 237,000 workers in August for the biggest monthly increase in five months, beating economists’ expectations, a report by a payrolls processor showed on Wednesday.

* The United States called on Wednesday for “concerted action” by the international community to pressure North Korea into abandoning its banned nuclear and missile programmes and said it was working on new sanctions.

* Tropical Storm Harvey inflicted more damage on the heart of the U.S. energy industry on Wednesday, threatening to squeeze supplies across the country for weeks.

* Holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust GLD, rose 0.3 percent on Tuesday, while the largest silver-backed ETF, New York’s iShares Silver Trust SLV, remained unchanged during the same period.

 

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