Gold edges lower as dollar strengthens ahead of trade talks

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Published: October 8, 2019 7:18:46 AM

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.13% and the U.S. dollar against a basket of currencies firmed around 98.98.

U.S. gold futures dropped 0.6% to ,495.20.U.S. gold futures dropped 0.6% to ,495.20.

Gold prices slipped for a third straight session on Tuesday, pressured by a stronger dollar and an uptick in equities ahead of upcoming U.S.-China trade talks in Washington.

FUNDAMENTALS
* Spot gold was down 0.2% to $1,489.80 per ounce, as of 0047 GMT. U.S. gold futures dropped 0.6% to $1,495.20.
* MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.13% and the U.S. dollar against a basket of currencies firmed around 98.98.
* The dollar strengthened after a Fox Business reporter tweeted that the Chinese Commerce Ministry said that China is ready to do a deal with the United States on parts of negotiations both sides agree upon.
* Top-level U.S.-China trade talks are scheduled to resume later in the week, when Chinese Vice Premier Liu He meets with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Washington.
* The talks are getting underway ahead of a scheduled increase in U.S. tariffs on $250 billion worth of Chinese goods, to 30% from 25% on Oct. 15.
* Spending on retail goods and dining during China’s week long National Day holidays returned to growth this year, offering unexpected respite to an economy that has been expanding at its weakest pace in almost three decades.
* Investors awaited the U.S. Federal Open Market Committee’s minutes from its September meeting, due on Wednesday, for clues to whether the Fed will cut rates at its October meeting, in what would be its third interest rate cut for the year.
* Uncertainties on the U.S. political front kept gold supported after Congressional Democrats issued subpoenas to the Pentagon and the White House budget office on Monday as part of their impeachment inquiry, seeking documents related to U.S. President Donald Trump’s decision to withhold military assistance from Ukraine.

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