August 08, 2018

Gold edges up as dollar softens versus yuan

(Reuters) - Gold prices drifted higher in Asian trade on Wednesday, extending gains into a second session, as the U.S. dollar softened against China's yuan and the euro.

    Spot gold  rose 0.2 percent to $1,213.56 an ounce at 0320 GMT, after rising 0.4 percent in the previous session.

    U.S. gold futures  were up 0.3 pct at $1221.70 per ounce.

    "The dollar-CNH is a bit under pressure this morning and we're seeing some buying on the back of that," a Hong Kong-based

trader said.

    China's yuan held firm near a one-week high versus the dollar  early Wednesday, following firmer equities, extending rise after the central bank last week took steps to curb the currency's decline. 

    Against a basket of currencies , the dollar eased 0.1 percent as its recent rally on concerns over escalating trade

tensions showed signs of fading.

    A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.

    "Gold is consolidating here for the moment. The dips on the dollar still seem to be bought so I am sceptical to call a

bottom on gold," the trader said.

    Meanwhile, Asian shares rose on Wednesday on the back of firmer Wall Street earnings while expectations for increased

Chinese stimulus helped take the edge off wider concerns about the worsening Sino-U.S. trade dispute. 

    The United States will begin collecting 25 percent tariffs on another $16 billion in Chinese goods on Aug. 23, the U.S.

Trade Representative's office said on Tuesday as it published a final tariff list targeting 279 imported product lines.

    The European Parliament has agreed to ease tough new liquidity rules for banks trading gold, marking a success for

the London Bullion Market Association's (LBMA) campaign to revise the plans.

    Holdings in SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, fell 0.15 percent to 787.53 tonnes on Tuesday. 

    Gold-backed exchange-traded funds  saw outflows in North America, Europe and Asia in July as a strong U.S. dollar helped weaken gold prices, the World Gold Council said on Tuesday. 

    Among other precious metals, silver rose 0.5 percent at $15.40 an ounce. Platinum  was up 0.1 percent at $826.99 per ounce, while palladium  climbed 0.8 percent to $913.30.