Gold prices rise as dollar drops

Gold prices inched up early on Thursday, as the dollar eased from 6-1/2 month highs hit earlier this week on a weaker-than-expected U.S. economic data, with prices further supported by concerns about the trade war.

Spot gold rose 0.2 percent to $1,303.30 per ounce by 0053 GMT. U.S. gold futures for June delivery were 0.2-percent higher at $1,304.30 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, fell 0.1 percent to 94.070. It touched a 6-1/2 month high at 95.025 on Tuesday.

U.S. economic growth slowed slightly more than initially thought in the first quarter as consumer spending rose at its weakest pace in nearly five years.

China lashed out on Wednesday at renewed threats from the White House on trade, warning that it was ready to fight back if Washington was looking for a trade war.

The United States will announce plans to impose tariffs on steel and aluminium from the European Union, possibly as early as Thursday, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Italy’s two main anti-establishment parties could yet form a government, after the man nominated as interim prime minister said politicians, rather than technocrats like himself, might be able to steer the country out of deadlock.

A senior North Korean official made a rare visit to the United States on Wednesday for talks about a possible summit between the leaders of the two countries.

South Africa’s Gold Fields is setting aside pursuit of new acquisitions for a year as it focuses on its existing operations and nearby prospects instead, the bullion producer’s chief executive told Reuters late on Tuesday.

Gold mining giants in Ghana such as Newmont, Gold Fields and AngloGold Ashanti welcome new government tests to certify the value of their exports, the main industry association said on Wednesday.

Canadian miner Bear Creek Mining will likely make a public offering for its Peruvian unit on the bourse in Lima to help finance its $550 million Corani silver project, the company’s chief financial officer said on Wednesday.

Source: Reuters