Gold up on buying, euro strength after Macron’s win in France
May 8 Gold firmed on Monday as bargain-hunters moved in after prices dipped to
seven-week lows and as the euro strengthened after expected win of pro-EU candidate
Emmanuel Macron in the French presidential election.
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* Spot gold rose 0.2 percent to $1,229.90 per ounce as of 0124 GMT, after touching
1,224.86 earlier in the session, its lowest since March 17.
* Gold last week saw its biggest weekly percentage fall since the week ending
Nov. 11, ending over 3 percent lower.
* U.S. gold futures were up 0.3 percent at $1,230.50 an ounce.
* In early Asian trading, the euro hit its highest since Nov. 9 after centrist
Emmanuel Macron comfortably won the French presidential election.
* Macron was elected French president on Sunday with a business-friendly vision of
European integration, defeating Marine Le Pen, a far-right nationalist who threatened
to take France out of the European Union.
* U.S. job growth rebounded sharply in April and the unemployment rate dropped to
4.4 percent, near a 10-year low, pointing to a tightening labor market that likely
seals the case for an interest rate increase next month despite moderate wage growth.
* Gold demand in India could be muted in the second half of 2017, as the rollout of
a new national sales tax from July is expected to dent appetite in the world's
second-biggest consumer, the World Gold Council (WGC) said on Thursday.
* Hedge funds and other money managers cut their net long
position in COMEX gold for the first time in seven weeks, in the
week to May 2, while they reduced their bullish stance in silver
to the lowest since January, U.S. government data showed Friday.
* Hong Kong Exchanges and Clearing Limited (HKEX) said it
plans to introduce physically settled CNH (offshore renminbi, or
RMB) and U.S. dollar gold futures contracts in the third quarter
of this year, subject to regulatory approval.
* China's gold reserves were unchanged at 59.24 million
ounces in April, the country's central bank said on Sunday.
* Gold demand in Asia rose last week, helped by a correction
in prices, but traders said some buyers have held back from
purchases while they wait for bullion prices to drop further.
* Industrial gold production in Mali could drop slightly
this year as the West African country awaits production from new
mines in 2018, the ministry of mines said on Friday.
DATA AHEAD (GMT)
* China Trade data April
0600 Germany Industrial orders March
0800 Euro zone Sentix index May
1400 U.S. Employment trends April
(Reporting by Swati Verma in Bengaluru)
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