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Gold prices firm on weaker dollar, equities

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Reuters BENGALURU
Last Updated : Jun 28 2017 | 7:07 AM IST

BENGALURU (Reuters) - Gold prices firmed on Wednesday on lower equities and a weaker U.S. dollar after European Central Bank President Mario Draghi hinted the ECB could trim its stimulus this year.

FUNDAMENTALS

* Spot gold had risen 0.2 percent to $1,249.17 per ounce by 0049 GMT.

* U.S. gold futures for August delivery climbed 0.2 percent to $1,249.40 per ounce.

* The U.S. dollar slid to 10-month lows against the euro on Tuesday after the ECB's Draghi opened the door to steps that might begin to reduce the central bank's stimulus. [USD/]

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* Asian shares slumped on Wednesday after Wall Street was knocked hard in the wake of a delay to a U.S. healthcare reform vote. [MKTS/GLOB]

* U.S. Senate Republican leaders postponed a vote on a healthcare overhaul on Tuesday after resistance from members of their own party, and President Donald Trump summoned Republican senators to the White House to urge them to break the impasse.

* U.S. Federal Reserve Chair Janet Yellen said on Tuesday that she did not believe there would be another financial crisis for at least as long as she lives, thanks largely to reforms of the banking system since the 2007-09 crash.

* The International Monetary Fund on Tuesday cut its growth forecasts for the U.S. economy to 2.1 percent for both 2017 and 2018, dropping its assumption that President Trump's tax cut and fiscal spending plans would boost growth.

* The Bank of England tightened its controls on bank credit to more normal levels on Tuesday, deciding the risk had passed of a big hit to the economy and to lending after last year's Brexit vote.

(Reporting by Nithin Prasad in Bengaluru; Editing by Joseph Radford)

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First Published: Jun 28 2017 | 7:00 AM IST

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