KONTAK PERKASA FUTURES – Gold prices fell on Thursday, after hitting a one-week high in the previous session, as the dollar steadied and equities recovered on the United States’s willingness to negotiate on tariffs with China, easing fears of a full-blown trade war.
Spot gold was down 0.2 percent at $1,331 per ounce as of 00:52 GMT, and the U.S. gold futures fell 0.4 percent to $1,335.10 an ounce.
Retaliation from China, the world’s largest gold consumer, lifted spot gold prices to a one-week high of $1,348.06 per ounce on Wednesday as the U.S. dollar tumbled against the yen and equities dipped.
The dollar held steady against the yen on Thursday after recovering against the safe-haven Japanese currency as stocks bounced back from a sell-off triggered by an escalating U.S.-China trade spat.
The United States voiced willingness on Wednesday to negotiate a resolution to an escalating trade fight with China after Beijing retaliated against proposed U.S. tariffs on $50 billion in Chinese goods by targeting key American imports, but the Chinese ambassador to Washington said it “takes two to tango.”
Golld prices rose on Wednesday as China said it would impose tariffs of up to 25% on 106 American products such as soybeans, elevating tensions in a simmering trade clash between the U.S. and Beijing.
June gold settled up $2.90, or 0.2%, at $1,340.20 an ounce. Worries that a trade war could erupt and hurt the economies of the two biggest economic superpowers helped buttress an advance for it. A weakening dollar also added support. A softer buck can make commodities priced in the currency more attractive to buyers using other monetary units.
The ICE U.S. Dollar Index was off 0.1% at 90.11. A downturn in the Dow Jones Industrial Average and the S&P 500 index also boosted bids in assets perceived as havens like gold.
Gold futures rose on Wednesday after China said it would impose tariffs of up to 25% on 106 American products such as soybeans and more, elevating tensions in a simmering trade confrontation between the U.S. and Beijing.
News of trade tensions provided a lift for gold and other havens that tend to attract bids in times of global uncertainty.
June gold popped 0.8%, or $10.20, at $1,347.50 an ounce in early trade, after the metal halted a string of consecutive gains in the previous session amid a rise in the equity market and easing global tensions. Meanwhile, May silver added 8 cents, or 0.5%, to $16.470 an ounce.
Source : kp-press.com