Gold inches lower as firm dollar offsets falling equities

Gold inched down today, after rising about 1 percent in the previous session, as a firm dollar offset support from fading appetite for riskier assets due to mounting global growth concerns.

FUNDAMENTALS

As of 0115 GMT, spot gold was down 0.1 percent at $1,296.73 per ounce, after briefly breaching the $1,300 ceiling in the previous session.

U.S. gold futures were also down 0.1 percent at $1,298.10 an ounce.

Asian shares were on a back foot on Monday after U.S. payrolls data raised doubts on the strength of the global economy.

The dollar rose 0.1 percent against major currencies in the early Asian trade and hovered close to its near two-month peak.

U.S. employment growth almost stalled in February, with the economy creating only 20,000 jobs, adding to signs of a sharp slowdown in economic activity in the first quarter.

China and the United States are still working day and night to achieve a trade deal that matches the interests of both sides and the hopes of the world, including eliminating tit-for-tat tariffs, a senior Chinese official said on Saturday.

Concerns that U.S. President Donald Trump will not accept a bad trade deal with China and Trump administration officials have not made any new plans to send a team to Beijing for face-to-face trade talks, White House trade adviser Clete Willems said on Friday.

Trump said on Friday he would be disappointed if Pyongyang were to resume weapons testing and reiterated his belief in his good relationship with North Korean leader Kim Jong Un despite the collapse last week of their second summit.

Federal Reserve Chairman Jerome Powell said on Sunday the U.S. central bank does “not feel any hurry” to change the level of interest rates again as it watches how a slowing global economy affects local conditions in the United States.

Brexit could be reversed if lawmakers reject the government’s exit deal, British foreign minister Jeremy Hunt said on Sunday after two major eurosceptic factions in parliament warned that Prime Minister Theresa May was facing a heavy defeat.

Hedge funds and money managers slashed their net long position in COMEX gold in the week to March 5, to its in over a month, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Physical gold demand picked up pace in major Asian hubs this week, with bullion being sold at a premium for the first time in more than three months in India, while China saw improved appetite for jewellery._Reuters