Investors are awaiting further developments from ongoing U.S.-China trade talks before making any big moves.
Gold traded in a tight $3 range on Friday as concerns over an economic slowdown supported prices for the safe-haven metal and a firm dollar kept a lid on gains. Investors are also awaiting further developments from ongoing U.S.-China trade talks before making any big moves. Spot gold was steady at $1,312.56 per ounce as of 0419 GMT, while U.S. gold futures were up 0.1 per cent at $1,315.40.
“Uncertainties around Brexit and trade talks and strengthening of the dollar are capping gold prices,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore. “Until there is resolution to these global concerns we might see gold prices range-bound between $1,305 and $1,326.”
The dollar measured against six of its peers was up 0.1 per cent at 97.04, after weakening by 0.12 per cent in the previous session.
Two White House negotiators will meet with Chinese President Xi Jinping later on Friday, but there has been no decision to extend a U.S. deadline for a deal by March 1, U.S. President Donald Trump’s economic adviser Larry Kudlow said on Thursday.
U.S. tariffs on $200 billion worth of imports from China are scheduled to rise to 25 per cent from 10 per cent if the two sides don’t reach a deal by then. “We are now in a very tight range. People are waiting for bigger (events) to move the market,” said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank. Weak U.S. retail sales data will be a good reason for the U.S. Federal Reserve not to raise interest rates, which is good for gold prices, he said.