PRECIOUS-Gold rises on softer dollar, global uncertainties

Reuters

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 (Updates prices)
    * Gold on track for a second straight weekly gain
    * Trump-Xi summit will not happen in March - Mnuchin
    * Lack of clarity on Brexit should support gold - analyst

    By Swati Verma
    March 15 (Reuters) - Gold rose on Friday, recovering from
the previous session's sharp fall, as the dollar dipped and
mounting concerns about a slowdown in global economic growth
buoyed demand for the safe-haven metal.
    Spot gold  XAU=  had gained by 0.6 percent to $1,303.30 per
ounce as of 0833 GMT, after shedding about 1 percent the day
before. It was on track for a small weekly gain for a second
consecutive week.
    U.S. gold futures  GCcv1  rose 0.6 percent to $1,302.90 an
ounce.
    The dollar  .DXY  slipped 0.2 percent against major
currencies, and was on track for its biggest weekly loss since
early December.  USD/ 
    "The dollar has weakened and gold as a safe-haven asset has
seen support from Brexit uncertainty. As long as gold can hold
the $1,290 level, it can reach the first level of $1,302 and
then $1,310," said Ajay Kedia, director at Kedia Commodities in
Mumbai.
    "The support we are now seeing at $1,290 shows that as long
as there is lack of clarity on the (Brexit) deal, gold should be
holding well."
    British lawmakers voted on Thursday to seek a delay in
Brexit, setting the stage for Prime Minister Theresa May to
renew efforts to get her divorce deal approved by the parliament
next week.  urn:newsml:reuters.com:*:nL8N2112BD
    Providing additional support to bullion were increasing
signs of a global economic slowdown, analysts said. 
    The Bank of Japan on Friday cut its assessment on overseas
economies, saying they were showing signs of a slowdown. It also
revised down its view on exports and output.  urn:newsml:reuters.com:*:nL3N2115QE
    Meanwhile, comments from China's Premier about a slowing
economy suggest that one of the world's biggest economy is
struggling, which is offering gold a bit of support, said Brian
Lan, managing director at dealer GoldSilver Central in
Singapore.  urn:newsml:reuters.com:*:nB9N1PJ03Q
    In the United States, data released on Thursday underscored
growing pressure on the economy. The number of Americans filing
applications for unemployment benefits increased more than
expected last week while new home sales fell more than expected
in January.  urn:newsml:reuters.com:*:nL1N2101BE
    "Data from U.S. is not so good. So, weak U.S. data and
Brexit are holding gold prices up," Kedia said, adding the
prevailing uncertainty around U.S.-China trade was also
supporting gold.
    A summit to seal a trade deal between U.S. President Donald
Trump and Chinese President Xi Jinping will not happen at the
end of March as previously discussed because more work is needed
in U.S.-China negotiations, Treasury Secretary Steven Mnuchin
said on Thursday.  urn:newsml:reuters.com:*:nL1N2110ZG
    In other precious metals, palladium  XPD=  gained 0.3
percent to $1,562.58 per ounce, and was on track for about 3
percent weekly gain.
    Silver  XAG=  gained 1.2 percent to $15.36 an ounce, and
platinum  XPT=  jumped 1.7 percent to $832.17.

 (Reporting by Swati Verma and K. Sathya Narayanan in Bengaluru;
Editing by Subhranshu Sahu and Rashmi Aich)
 ((Swati.Verma@thomsonreuters.com;  within U.S. +1 651 848 5832,
outside U.S. +91 80 6749 6356/1298 ; Reuters Messaging:
swati.verma.thomsonreuters.com@reuters.net))

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