Gold gains as ‘Tariff-Man’ Donald Trump dents trade hopes, risk sentiment

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Updated: May 7, 2019 7:52:56 AM

Spot gold was up 0.2 percent at $1,282.11 per ounce as of 0147 GMT.

Gold prices, donald trump, chinese imports, United States, US trade, spot gold, US gold futuresU.S. gold futures were unchanged at ,283.60 an ounce. (Reuters)

Gold prices rose on Tuesday amid U.S. President Donald Trump’s decision to hike tariffs on Chinese imports, which re-escalated trade tension and pushed investors to seek insurance in the safe-haven asset.

FUNDAMENTALS

* Spot gold was up 0.2 percent at $1,282.11 per ounce as of 0147 GMT.

* U.S. gold futures were unchanged at $1,283.60 an ounce.

* China backtracked on substantial commitments it had made during trade talks with the United States, prompting President and self proclaimed “tariff-man” Donald Trump to impose additional tariffs on Chinese goods slated to go into effect on Friday, top U.S. trade officials said on Monday.

Also read: US stocks: Wall Street falls as White House plans to raise China tariffs

* Trump’s announcement comes in stark contrast to his views from the past week, where he lauded progress between the two countries on the trade front.

* Asian shares wallowed near five-week lows on early Tuesday after U.S. President Donald Trump’s threat to raise tariffs re-ignited worries about U.S.-China trade tensions while Japan’s Nikkei opened down after a 10-day break.

* The U.S. dollar slipped to a five-week low against the yen and fell versus other currencies on Monday after Trump’s decision on tariffs.

* However, China said on Monday that a delegation was still preparing to go to the United States for trade talks, despite Trump’s dramatically increased pressure on Beijing to reach a deal, stoking hopes that Trump’s threat may not culminate into action.

* India raised gold holdings by 3.733 tonnes to 612.587 tonnes in March, data from the International Monetary Fund (IMF) showed on Monday.

* Meanwhile, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.16 percent to 739.64 tonnes on Monday from 740.82 tonnes on Friday.

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