Gold prices inched lower yesterday as investors sought more clarity on US-China trade talks, while escalating tensions in the Middle East provided some support.
Spot gold fell 0,2 percent to $1,514.44 per ounce at 0546 GMT, but lingered near the over one-week high of $1,516.81 hit on Friday. US gold futures were up 0,5 percent to $1,521.90 per ounce.
“Gold is currently in a mixed zone. The pickup in geopolitical risk from Saudi Arabia and President Trump rejecting the possibility of a partial trade deal with China certainly adds that little more shine to gold,” said Howie Lee, economist at OCBC Bank.
A US-China trade breakthrough seemed unlikely after President Donald Trump told reporters on Friday he was “not looking” for a partial deal, and Chinese officials cancelled goodwill visits to US farmers.
But both sides later published positive statements, with the US Trade Representative’s office describing the last week’s talks as “productive” and China’s Commerce Ministry calling them “constructive”.
October’s high-level talks remain on track. Meanwhile in the Middle East, tensions remained elevated with the Pentagon ordering additional troops to be deployed in the Gulf region. — Reuters.