Gold holds steady near 1-year low

BENGALURU: Gold prices were little changed early Friday, having hit a one-year low in the previous session on a resilient US dollar.

FUNDAMENTALS

* Spot gold was up 0.1 per cent at $1,209.15 an ounce at 0050 GMT, after hitting the lowest since July 2017 at $1,206.80 in the previous session. For the week, the precious metal was down more than 1 per cent, in what could be its fourth straight weekly drop.

* US gold futures were, however, 0.2 per cent lower at $1,217.20 an ounce on Friday.

* The dollar stayed firm against the yuan and a basket of currencies as worries about an escalation in trade tensions between the United States and China supported the US currency.

* China vowed on Thursday to retaliate if the United States acted on a threat to raise tariffs on the Asian nation's exports, fueling fears in financial markets that the trade war between the world's two biggest economies would escalate.

* The number of Americans filing for unemployment benefits rose less than expected last week, pointing to sustained strength in the labour market despite trade tensions.

* California and 18 other US states promised on Thursday to fight a Trump administration proposal to weaken fuel efficiency standards for cars and trucks and force states into line, arguing the United States has an obligation to protect the environment for future generations.

* The Bank of England pushed interest rates above their financial crisis lows on Thursday, but signalled it was in no hurry to raise them further as Britain heads for Brexit next year with no clear plan for leaving the European Union.

* Bank of Japan Deputy Governor Masayoshi Amamiya said the central bank had no fixed time frame for how long it would keep interest rates low but signalled the chance of taking more steps to address the rising cost of easing on parts of the economy.

* Euro zone producer prices rose more than expected in June, data showed on Thursday, lifted mainly by more expensive energy.

* Slower income growth and soft home sales are hurting consumer spending growth in China, an official with the country's planning agency said on Thursday, although consumption was expected to pick up again as various seasonal factors recede.