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.
- 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.
- 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.