Gold inches up on softer dollar

Gold prices edged higher early on Wednesday as the greenback softened while investors awaited U.S. economic growth data due later this week.

Spot gold was 0.2 percent higher at $1,226.13 an ounce at 0051 GMT. U.S. gold futures for August delivery were up 0.1 percent at $1,226.10 an ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was trading 0.1 percent lower at 94.547.

The second-quarter U.S. economic growth data is due on Friday. Market watchers largely expect growth to top current forecasts of 4.1 percent.

A now-robust U.S. economy will soon lose momentum on rising interest rates and escalating trade disputes, according to economists polled by Reuters who nonetheless gave just a one-in-three chance of a recession over the next two years.

The Trump administration on Tuesday said it will use a Great Depression-era program to pay up to $12 billion to help U.S. farmers weather a growing trade war with China, the European Union and others that the president began.

The revamp of the North American Free Trade Agreement (NAFTA) between the United States, Mexico and Canada ought to be concluded in the next few months, a top adviser in the incoming Mexican administration said on Tuesday.

Republicans who control the U.S. Congress are hesitating to advance tough new Russia sanctions legislation as fears of damage to American companies slow efforts to quickly send Moscow a message against meddling in the next U.S. election.

Euro zone business growth slowed more than expected this month as fears over a trade war with the United States and a weaker global expansion put another dent in optimism, a survey showed on Tuesday.

German Foreign Minister Heiko Maas said in a media interview published on Wednesday that the British government needs to get moving in Brexit negotiations, including on the Northern Ireland border issue.

China will adopt a more vigorous fiscal policy to help tackle external uncertainties without resorting to strong policy stimulus, state radio said on Monday, citing the cabinet.

Japanese government bond prices reversed earlier gains on Tuesday, with investors unable to shake concerns the central bank might be a step closer to unwinding its aggressive monetary stimulus.

Russia’s largest gold producer Polyus said on Tuesday its gold sales in the second quarter were up 12 percent from the previous quarter and stood at $683 million.

Source: Reuters

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