China Evergrande's Offshore Bond Default Imminent

An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo
An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo
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China Evergrande's Offshore Bond Default Imminent

An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo
An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo

China Evergrande Group is expected to default on its offshore bond payment obligations imminently, investment bank Moelis & Co, which has been selected as an advisor by a group of the cash-strapped developer's bondholders said on Friday.

Evergrande, which is facing one of the country's largest defaults as it wrestles with more than $300 billion of debt, has already missed coupon payments on dollar bonds twice last month, reported Reuters.

The missed payments, worth a combined $131 million, have left global investors wondering if they will have to swallow large losses when 30-day grace periods end for coupons that were due on Sept. 23 and Sept. 29.



Gold Edges Higher on Fiscal Debt Concerns while Traders await US Jobs Data

A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo
A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo
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Gold Edges Higher on Fiscal Debt Concerns while Traders await US Jobs Data

A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo
A salesman chooses gold chains for people buying gold at a gold shop in Bangkok's Chinatown, Thailand, June 8, 2016. REUTERS/Chaiwat Subprasom/File Photo

Gold prices edged higher on Wednesday as investors shifted their focus to the US fiscal situation and lingering uncertainty ahead of the July 9 deadline for US tariffs to take effect.

Spot gold was up 0.1% at $3,340.67 per ounce at 1157 GMT. US gold futures were steady at $3,351.10.

"The markets are again focused on the US fiscal situation ... and combined with uncertainty about the July 9 tariff deadline, these create fog for traders, who are directing flows towards safe-haven assets like gold," said Ricardo Evangelista, senior analyst at brokerage ActivTrades, Reuters reported.

US Senate Republicans narrowly passed President Donald Trump's tax and spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes and boosting military spending while adding $3.3 trillion to the national debt.

"We still think debt level concerns, ongoing pressure on the Fed to adjust their rates and weaker US economic data will support the price of gold," said UBS commodity analyst Giovanni Staunovo.

Data on Tuesday showed US job openings increased unexpectedly in May, but a decline in hiring added to signs that the labor market has shifted into lower gear.

Fed Chair Jerome Powell reiterated that the US central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.

The focus now shifts to US ADP employment data due later in the day, followed by June non-farm payroll figures on Thursday, for further insights into labor market conditions.

In other precious metals, spot silver gained 0.5% to $36.24 an ounce, platinum rose 2.2% to $1,380.31 and palladium climbed 2% to $1,122.