News Commodity Market News

Gold stumbles on US-China trade talk optimism


COMEX gold trades marginally lower near $1310/oz weighed down by gains in US dollar and equity market. Gold rose as high as $1321.7/oz Wednesday but failed to hold the gains has corrected since then.

Risk sentiment improved amid easing worries about US-China trade dispute. US and Chinese officials will meet today and tomorrow to discuss trade issues. Meanwhile, reports have noted that President Donald Trump is considering pushing back the deadline for imposition of higher tariffs on Chinese imports by 60 days.

While softening of US stance has eased market nerves, the possible extension of deadline can be seen as need for more time to negotiate due to continuing differences. US and China are debating issues like knowledge transfers as well as structural reforms.

While US-China optimism has dented US dollar's safe haven appeal, the US currency continues to hold firm against Euro and British Pound amid concerns about health of European economies and Brexit uncertainty.

ETF outflows also show weaker investor interest. Gold holdings with SPDR ETF were last noted at 796.854 tonnes, lowest since January 8.

Free Research for Trial

Please note that by submitting the above mentioned details, you are authorising us / Kotak Commodity Services Private Ltd (formerly known as Kotak Commodity Services ltd) to call you and send promotional communication even though you may be registered under DNC.