News Commodity Market News

Gold struggles near $1300/oz amid lack of fresh cues

12-Feb-2019

COMEX gold trades in a narrow range near $1310/oz as support from global economic uncertainty is countered by strength in US dollar and ETF outflows.

Market players are on sidelines awaiting more clarity on US-China trade talks, US government shutdown and Brexit.

US-China officials held preparatory talk on Monday and higher level officials will meet on Thursday and Friday to discuss trade issues. The Trump administration said the US president still wants to meet China's Xi Jinping in an effort to end the trade war. President Donald Trump also said he doesn't want China to have a "hard time" on trade. Unless a deal is reached by March 1, US will increase import tariffs on $200 billion Chinese goods from current 10% to 25%.

The US faces a Feb.15 deadline to reach a deal to avert another government shutdown. Reports noted that US lawmakers have reached an "agreement in principle" on border security funding that would avert a second government shutdown.

On Brexit front, UK Prime Minister Theresa May will update lawmakers in the House of Commons today on the progress - or lack thereof - of Brexit talks with the EU.

The US dollar index has risen for last eight trading sessions supported by concerns about health of European economies, US-China trade uncertainty and dovish tilt of major central banks.

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