Moneycontrol Be a Pro
Get App
Last Updated : Aug 30, 2019 04:52 PM IST | Source: Reuters

Gold prices inch down on positive signs for trade talks

For the month, bullion is set to rise 7.9%. However, for the week, it's headed for a mild loss of 0.1%, following four weeks of gains.


Gold prices dipped on Friday as the United States and China indicated they may resume talks to resolve their protracted trade conflict, putting the metal on track for a small weekly loss despite a strong month.

FUNDAMENTALS

Spot gold fell 0.2% to $1,525.06 per ounce, as of 0112 GMT.

Close

For the month, bullion is set to rise 7.9%. However, for the week, it's headed for a mild loss of 0.1%, following four weeks of gains.

U.S. gold futures were also down 0.2% at $1,534.50 an ounce.

China's commerce ministry said on Thursday Beijing and Washington were discussing the next round of face-to-face talks scheduled for September, but added it was important for Washington to cancel a tariff increase.

U.S. President Donald Trump also said some discussions were taking place on Thursday, ahead of a looming deadline for additional U.S. tariffs on Sept. 1.

Wall Street and Asian stock markets rose in response to the potential softening in the Sino-U.S. trade war.

The Trump administration on Wednesday made official its extra 5% tariff on $300 billion in Chinese imports and set collection dates of Sept. 1 and Dec. 15.

The dollar index, which measures the greenback against a basket of six major currencies, touched a peak last hit on Aug. 1.

Christine Lagarde, the European Central Bank's next president, said on Thursday the bank still has room to cut interest rates if needed, although this may pose financial stability risk.

Markets are fully priced in for a quarter-point cut in interest rates by the U.S. Fed next month, and over 100 basis points of easing by the end of next year.

Data on Thursday showed that German inflation slowed in August and unemployment rose, cementing expectations of a new ECB stimulus package next month.

Investors are also focused on a string of economic releases due over the weekend including China's official manufacturing survey which would provide a good gauge of the real impact from the Sino-U.S. trade war.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 880.36 tonnes on Thursday from Wednesday.

U.S. Treasury yields rose overnight with the benchmark 10-year Treasury climbing up from a three-year low touched earlier this week.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Aug 30, 2019 08:42 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant