Gold prices gain in Asia on london Attacks, Qatar diplomatic row

Gold found support in Asia on Monday after a weekend attack in London that killed seven after a van mowed down pedestrians on London Bridge and attackers from the vehicle fanned out and started stabbing people at nearby restaurants and bars and mulled the potential fallout as key Gulf Countries and Egypt snapped diplomatic and commercial ties with Qatar over terrorism support charges.

Gold for June delivery rose 0.19% to $1,282.61 a troy ounce on the Comex division of the New York Mercantile Exchange.

Last week, gold prices rose to their highest level in over than a month on Friday after a disappointing U.S. employment report underlined the case for the Federal Reserve to continue raising rates at a gradual pace.

The U.S. economy added 138,000 jobs last month the Labor Department reported, falling far short of economists’ expectations for 185,000 new jobs.

Figures for March and April were also revised to show that 66,000 fewer jobs were created than expected, indicating that the labor market may be losing momentum.

The unemployment rate ticked down to a 16-year low of 4.3%.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.57% to 96.61 late Friday. It was the lowest close since the U.S. presidential election on November 8, which sent the index soaring.

Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures, which are denominated in the U.S. currency, will rise.

Most analysts still believe the disappointing data will not stop the Federal Reserve from raising interest rates at its meeting later this month.

Traders now see a roughly 88% chance of a Fed rate increase on June 14, down slightly from 89% before the jobs report.

But the slowdown in jobs growth could temper expectations for a pick-up in economic growth in the second quarter after the economy expanded by just 1.2% year-over-year in the first quarter.

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

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FOREX-Dollar edges up, on track for weekly gains

* tender euro zone inflation knowledge pressures euro
* Upward revision to US GDP data helps buck
* S. African rand slumps as fin min replaced
TOKYO, March 31 The buck edged up in Asian trading on Friday, poised for weekly gains after solid U.S. financial knowledge contrasted with figures exhibiting euro zone inflation cooling.
The buck index, which tracks the U.S. currency in opposition to a basket of six major competitors, used to be up zero.1 percent at one hundred.50, up zero.9 percent for the week and not a long way from a two-week excessive of a hundred.60 hit overnight.

The euro nursed losses, up 0.1 percent on the day at $1.0681 but down 1.1 p.c for the week.
German and Spanish shopper price knowledge released on Thursday showed inflation slowed extra sharply than expected in March as oil prices slumped, offering some respite to the eu important bank because it faces force to wind down its monetary stimulus.

Revised U.S. gross home product data on Thursday showed that U.S. fourth quarter boom slowed less than in the past stated as consumer spending provided a boost that used to be partly offset by way of the largest acquire in imports in two years.
"The number itself wasn't nice but the ahead-taking a look symptoms appear lovely good," mentioned Jennifer Vail, head of fixed-income research for US financial institution Wealth management in Portland, Oregon.

"you're almost certainly going to see some modest response to the softness we're seeing within the eurozone, as it looks as if one of the most inflation knowledge just isn't as strong as originally idea," she stated. "i believe the reason you didn't see extra big greenback potential is considerations on the shortage of conviction that our new president had in getting ACA repealed."
Republicans withdrew their bill per week ago to replace and repeal the Obama administration's affordable Care Act (ACA) due to lack of beef up in Congress, elevating issues that President Donald Trump's tax reform and stimulus measures may also face legislative challenges.
Trump lashed out on Thursday at Republican conservatives who helped torpedo the healthcare legislation, escalating a feud inside his birthday celebration.
towards its jap counterpart, the dollar was once flat on the day at 111.ninety eight yen, up 0.5 percent for the week.

data launched on Friday showed Japan's core client costs rose 0.2 p.c in February from a yr prior, marking the fastest annual percent in nearly two years however nonetheless far-off from the crucial bank's ambitious 2 p.c goal.

Japan's business yr ends on Friday. The buck was heading in the right direction to lose 0.6 percent against the yen for the fiscal duration.
Sterling edged up 0.2 percent to $1.2490, on course for a slight achieve in a week marked via unstable trading in per week through which British prime Minister Theresa may formally triggered the Brexit process.

The dollar rallied 1 p.c towards South Africa's rand to thirteen.410, its absolute best considering early February, after President Jacob Zuma changed the united states of america's finance minister.

Zuma appointed Malusi Gigaba to replace Pravin Gordhan who used to be sacked in a cabinet reshuffle late on Thursday evening, eNCA tv stated. (Reporting via Tokyo markets team; enhancing by way of Richard Pullin)

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