🚀 ProPicks AI Hits +34.9% Return!Read Now

PRECIOUS-Gold inches up as markets await cues on trade deal

Published 2019-11-06, 02:52 a/m
© Reuters.  PRECIOUS-Gold inches up as markets await cues on trade deal
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
GLD
-
DXY
-

* Signing venue for U.S-China "phase one" trade deal not fixed

* Holdings in SPDR Gold Trust rose 0.13% on Tuesday

(Updates prices, adds comment)

By Sumita Layek

Nov 6 (Reuters) - Gold prices inched higher on Wednesday as investors were cautious in anticipation of a trade deal between the United States and China, while concerns over global economic growth supported the safe-haven bullion.

Spot gold XAU= rose 0.1% to $1,485.25 per ounce at 0742 GMT. On Tuesday, prices registered their biggest one-day percentage drop since late-September at 1.7%.

U.S. gold futures GCv1 were up 0.2% at $1,486.90.

"We are not very bearish on gold prices as there are concerns over global economic growth. Economic data from the U.S., China and the European Union is not very strong ... this short-term pullback is just a technical retracement," said Ajay Kedia, director at Kedia Advisory in Mumbai.

The protracted trade war between the United States and China has roiled financial markets and raised fears of a global economic slowdown, helping the safe-haven bullion to rise more than 15% this year.

Optimism that Washington and Beijing are working to narrow their differences enough to sign a "phase one" trade deal as early as this month has boosted risk sentiment in financial markets and weighed on gold in the past two sessions. the venue for signing the deal was not yet finalised.

"(Trade talks) are unpredictable, as long as the deal is not complete and in paper it is closed, uncertainty is going to be there, because by now we have seen them starting talks and stopping mid way several times," Kedia said.

Asian shares fell for the first time in four trading sessions as some investors started to temper their optimism in the absence of concrete progress in negotiations between the world's two-largest economies on scaling back their bruising trade war. MKTS/GLOB

The dollar index eased against major currencies .DXY , making bullion cheaper for non-U.S. investors. USD/

U.S. data on Tuesday showed better-than-expected ISM non-manufacturing data for October and eased some fears of global economic slowdown. gold finally break the $1,480.00 region convincingly, we may see some long position liquidation," said OANDA analyst Jeffrey Halley in a note.

Holdings in the world's largest gold-backed exchange-traded fund SPDR Gold Trust GLD , rose 0.13% to 915.85 tonnes on Tuesday. GOL/ETF

Among other metals, silver XAG= fell 0.2 % to $17.54 per ounce, while platinum XPT= was down 0.5 % at $924.52 per ounce. Palladium XPD= inched 0.4% lower to $1,771.54 per ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.