Gold inches up as US says China tariffs in place till Phase 2 deal

Spot gold rose 0.1% to $1,547.23 per ounce by 0117 GMT; prices had touched their lowest since Jan. 3 at $1,535.63 on Tuesday. U.S. gold futures rose 0.2% to $1,547.80.

January 15, 2020 / 08:11 AM IST

Gold edged up on Wednesday, after a top U.S. official said tariffs on China would stay until a Phase 2 deal is completed, ahead of the signing of an interim trade deal between the two countries, while palladium scaled a record peak.

FUNDAMENTALS

- Spot gold rose 0.1% to $1,547.23 per ounce by 0117 GMT; prices had touched their lowest since Jan. 3 at $1,535.63 on Tuesday. U.S. gold futures rose 0.2% to $1,547.80.

- Palladium was flat at $2,193.58 an ounce after hitting a record peak of $2,204.29 earlier in the session.

- U.S. Treasury Secretary Steven Mnuchin said on Tuesday the United States would keep in place tariffs on Chinese goods until the completion of a Phase 2 trade deal.

Close

- Mnuchin also said, the first phase of a trade agreement will be fully enforceable, including a pledge by China to refrain from manipulating its currency.

- China has pledged to buy almost $80 billion of additional manufactured goods from the United States over the next two years as part of a tariff war truce, according to a source, though some U.S. trade experts call it an unrealistic target.

- Asian stocks trod water as investors awaited signing of the Phase 1 deal, although comments from Mnuchin on tariffs somewhat cooled investor sentiment and triggered profit-taking.

- U.S. consumer prices rose slightly in December even as households paid more for healthcare, and monthly underlying inflation slowed.

- The Federal Reserve Bank of New York said on Tuesday it will continue to inject liquidity into the overnight lending markets for cash until at least mid-February while slightly reducing offerings on longer term loans.

- Resolute Mining Ltd said on Wednesday it will sell its Ravenswood Gold mine for up to A$300 million ($207 million) to a consortium led by resource-focused private equity firm EMR Capital.

- Elsewhere, silver shed 0.1% to $17.78 per ounce, while platinum advanced 0.2% to $985.00.
Reuters
first published: Jan 15, 2020 08:05 am

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