Gold rises as dollar, stocks ease ahead of US-China talks

Gold edges up ahead of Sino-U.S. trade talks

Gold edges up ahead of Sino-U.S. trade talks

Earlier this week, gold prices retreated with the USA dollar appreciating and investors' cautious anticipation ahead of the resumption of trade talks between the United States and Chinese officials.

Gold prices gained on Tuesday, bouncing off a one-week low touched earlier in the session, as uncertainties over U.S.

"The stock market is increasing losses, so gold is taking back the safe haven role", ActivTrades chief analyst Carlo Alberto De Casa said, adding, "The markets are also fearing the trade talks and what's going on with Brexit".

The results of the latest U.S. jobs report supported expectations that the Fed will go ahead with a quarter percentage point rate cut at the end of October, which will spur gold gains.

USA gold futures fell 0.6% to US$1,503.70 per ounce.

Prices had climbed due to doubts about a near-term trade resolution between the US and China.

Spot gold rose 0.5% to $1,500.35 per ounce, as of 0931 GMT. "That's the reason why there's a small flight into safe-haven products", said Phillip Streible, senior commodities strategist at RJO Futures. "All that's interpreting into a range-bound action for gold here". There's $1,465 to the downside and $1,566 on the upside.

More news: Draconids Meteor Shower Peaks Tuesday Evening
More news: Blizzard Suspends Hearthstone Pro for Supporting Hong Kong Protests
More news: Tech startup Aleph Farms 3D bioprints meat in space

In a setback for prospects of an orderly Brexit, a British source said that German Chancellor Angela Merkel told Prime Minister Boris Johnson by phone that a deal was "overwhelmingly unlikely" unless Britain left its province of Northern Ireland in Europe's customs union.

Although formal talks are set to begin Thursday, deputy trade negotiators were scheduled to meet on Tuesday to lay the groundwork for the deliberations. They are now the world's biggest purchasers of the metal.

Investors awaited the U.S. Federal Open Market Committee's minutes from its September meeting, due on Wednesday, for clues to whether the Fed will cut rates at its October meeting, in what would be its third interest rate cut for the year. A weaker US currency makes dollar-denominated gold less expensive for holders of other currencies.

Lower interest rates tend to increase investor interest in non-yielding bullion.

Silver futures followed gold higher in afternoon trading.

Platinum rose 1.1% to $886.50, while palladium climbed 0.8% to $1,673.25.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.