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Gold up on safe-haven buying as equities drop

Reuters 2018-02-09 07:02:20

(Reuters) - Gold prices edged up on Friday, recovering from more than one-month lows as tumbling equities markets pushed investors into safe-haven assets, but a firmer dollar and worries about rising global interest rates kept gains in check.

FILE PHOTO: Gold bars are displayed at South Africa's Rand Refinery in Germiston May 30, 2006. REUTERS/Siphiwe Sibeko/File Photo

FUNDAMENTALS

* Spot gold was up 0.1 percent at $1,320.72 an ounce, as of 0038 GMT. Prices touched their lowest since Jan. 4 at $1,306.81 on Thursday.

* Spot gold was down 1 percent for the week and heading for its second straight weekly loss.

* U.S. gold futures were up 0.3 percent at $1,322.60 per ounce.

* Asian stocks tumbled on Friday after Wall Street shares suffered yet another big slide amid worries over rising bond yields, while perceived havens such as the yen and Swiss franc drew demand amid the turmoil. [MKTS/GLOB]

* While a strengthening U.S. dollar weighed on gold during the recent global stock market sell-off, more investors decided to buy bullion later, when prices touched technical support around $1,312 an ounce, said Michael Matousek, head trader at U.S. Global Investors.

* The Bank of England said on Thursday it was likely to raise interest rates sooner and by more than it thought only three months ago, because Britain’s slow-moving economy is getting a boost from the global recovery.

* The benchmark 10-year Treasury note yield rose as high as 2.884 percent on Thursday after the Bank of England signalled more aggressive rate hikes, just below Monday’s four-year high of 2.885 percent. It last stood at 2.8385 percent.

* Analysts polled by Reuters said they did not expect the dollar to rebound this year, despite expectations of at least three rate rises.

* The dollar index, which measures the greenback against a basket of currencies, was firm at 90.272.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.07 percent to 826.31 tonnes on Thursday from Wednesday. [GOL/ETF]

* Randgold Resources could lose $10 million per year if a proposed change to the Democratic Republic of Congo is signed into law, Chief Executive Mark Bristow said.

* Dramatic political changes in southern Africa have transformed the investment mood for the better in the space of a year.

* Executives from around the world are meeting in Cape Town this week for Mining Indaba 2018, an the annual industry conference which brings together more than 2,000 companies.

* The jewellery industry’s standards watchdog, the Responsible Jewellery Council (RJC), is failing to ensure gold and diamonds are responsibly sourced by its members, a campaign group said in a report on Thursday.

DATA AHEAD (GMT)

0130 China Consumer prices Jan

0130 China Producer prices Jan

0745 France Industrial output Dec

1500 U.S. Wholesale sales Dec