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Gold Prices Steady On Softer Dollar Ahead Of Fed Minutes

Kitco News

BENGALURU, July 5 (Reuters) - Gold prices were little changed early on Thursday, after hitting a one-week high in the previous session, as the dollar eased and the markets awaited minutes from the U.S. Federal Reserve's June policy meeting later in day.

FUNDAMENTALS

* Spot gold XAU= held steady at $1,256.02 an ounce as of0047 GMT. The metal touched a one-week high at $1,261.10 in the prior session and gained over $20 from Tuesday's low of$1,237.32 an ounce, which was its weakest since Dec. 12.

* The dollar index .DXY= , which measures the greenback against a basket of six major currencies, was 0.1 percent lower at 94.565. USD/

* Investors are awaiting the outcome of a two-day U.S.Federal Reserve policy meeting to be announced at 2 p.m. EDT(1800 GMT) FED/DIARY

* Chinese tariffs on $34 billion of U.S. goods will take effect from midnight July 6 Beijing time, a person with knowledge of the plan told Reuters, amid worsening trade tensions between the world's two largest economies.

* China will "absolutely not" fire the first shot in a trade war with the United States and will not be the first to levy tariffs, its finance ministry said on Wednesday. urn:newsml:reuters.com:*:nL4N1U02QG

* Trade barriers being erected by major economies could jeopardize the global economic recovery and their effects are already starting to show, the World Trade Organization said on Wednesday in a report on trade restrictions among G20 nations.

* The United States appears to have shelved an "all or nothing" approach to North Korean denuclearization as U.S.Secretary of State Mike Pompeo prepares to head back to NorthKorea this week hoping to agree on a roadmap for its nuclear disarmament.

* Iran could reduce its co-operation with the U.N. nuclear watchdog, President Hassan Rouhani told the body's head on Wednesday, after he warned U.S. President Donald Trump of"consequences" of fresh sanctions against Iranian oil sales.

* Bank of Japan board member Yutaka Harada warned on Wednesday that raising interest rates quickly would severely damage financial institutions, underscoring market views that the central bank would go slow in exiting crisis-mode stimulus.

* Euro zone business growth accelerated in June, offering encouragement to the European Central Bank to tighten policy, but optimism among purchasing managers was at its lowest ebb since late 2016, a survey found.

DATA AHEAD (GMT)

0600 Germany Industrial orders May

1215 U.S. ADP national employment June

1230 U.S. Weekly jobless claims

1400 U.S. ISM non-manufacturing PMI June

1800 Federal Reserve to release minutes from June 12-13meeting

(Reporting by Karen Rodrigues in Bengaluru; Editing by VyasMohan)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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