Gold steady as investors await US-China trade talks

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Published: June 27, 2019 8:04:43 AM

Spot gold was mostly unchanged at $1,408.92 per ounce as of 0107 GMT.

Gold price, US Federal Reserve, US gold futures,  Xi Jinping, SPDR Gold Trust, Bitcoin, Sino-US trade, asian trade marketGold prices hit a six-year peak of ,438.63 on Tuesday. (Reuters)

Gold traded steady on Thursday after the previous session’s sharp fall, as investors looked forward to trade talks between Washington and Beijing later this week in Japan.


* Spot gold was mostly unchanged at $1,408.92 per ounce as of 0107 GMT. Prices fell more than 1% in the previous session after U.S. Federal Reserve officials dented expectations of aggressive interest rate cuts.

* Gold prices hit a six-year peak of $1,438.63 on Tuesday.

* U.S. gold futures were 0.2% lower at $1,412.80 an ounce.

* U.S. President Donald Trump said a trade deal with Chinese President Xi Jinping was possible this weekend but he is prepared to impose U.S. tariffs on virtually all remaining Chinese imports if the two countries continue to disagree.

* Trump accused Fed Chairman Jerome Powell on Wednesday of doing a “bad job” and “out to prove how tough he is,” but any move to oust him would likely touch off a legal fight with big repercussions in financial markets as well.

Also read: Oil prices fall as market awaits G20 summit, OPEC

* On Tuesday, Powell said the central bank was “insulated from short-term political pressures,” pushing back against Trump’s demand for a significant rate cut.

* Trump also said that he was “not talking boots on the ground” should he take military action against Iran and that he had “unlimited time” to try to forge an agreement with Tehran. * The dollar index was relatively unchanged on Thursday, moving away from three-month lows, as traders dialled back expectations of aggressive interest rate cuts.

* Asian markets were busy going nowhere on Thursday as confusion shrouded the chances of any progress in the Sino-U.S. trade standoff, while bulls scaled back wagers for a drastic cut in U.S. interest rates.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.22% to 797.85 tonnes on Wednesday from 799.61 tonnes on Tuesday.

* Bitcoin jumped to an 18-month high on Wednesday, as investors looked for safety in alternative investments amid geopolitical tension.

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