|23 April, 2019

Gold edges up on U.S.-Iran jitters; firm dollar, stocks limit gains

Spot gold gained 0.1% to $1,275.78 per ounce

Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. Image used for illustrative purpose.

Gold bars are seen at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. Image used for illustrative purpose.

REUTERS/Leonhard Foeger

Gold prices edged up on Tuesday as Washington moved to choke off Iran's oil revenues, prompting safe haven buying, but gains were capped by a strong dollar and Asian shares hovering near a nine-month peak.

FUNDAMENTALS

* Spot gold gained 0.1 percent to $1,275.78 per ounce as of 0115 GMT.

* U.S. gold futures were unchanged at $1,277.70 an ounce.

* The dollar index against a basket of six key rivals was a shade higher, edging near a 2019 high of 97.71 struck in early March.

* Asian shares were little changed on Tuesday, hovering not far from Thursday's nine-month peak, as many markets began trading after a long Easter weekend, with concerns over China's policy easing capping gains.

* Stocks on Wall Street hovered near break-even overnight as the benchmark S&P 500 index was about 1 percent away from the record high hit in September, with the S&P energy index leading the gains on higher oil prices.

* The United States on Monday demanded that buyers of Iranian oil stop purchases by May 1 or face sanctions, a move to choke off Tehran's oil revenues which sent crude prices to six-month highs on fears of a potential supply crunch.

* Russia raised its gold holdings by 19.4 tonnes in March, data from the International Monetary Fund showed on Monday.

* U.S. home sales fell more than expected in March as rising demand stoked by declining mortgage rates and slowing house price inflation continued to be frustrated by a lack of properties, especially in the lower-priced segment of the market, data showed on Monday.

* Red 5 Ltd reported gold production from its West Australian gold operations fell to 24,187 ounces in March 2019 quarter from 26,118 ounces in the December quarter.

* Barrick Gold Corp and Newmont Goldcorp Corporation's Nevada joint venture deal clears all regulatory conditions, the companies said on Monday.

DATA AHEAD (GMT)

* 1400 U.S. New Home Sales-Units March

* 1400 EU Consumer Confid. Flash April (Reporting by Arijit Bose in Bengaluru; editing by Richard Pullin)

© Reuters News 2019

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