Gold pares gains on U.S.-China trade war optimism

(Reuters) - Gold prices pared gains on Tuesday after U.S. President Donald Trump confirmed he would meet with Chinese President Xi Jinping at an international summit, fanning hopes for a quick end to the U.S.-China trade dispute

Reuters June 19, 2019 02:06:58 IST
Gold pares gains on U.S.-China trade war optimism

Gold pares gains on USChina trade war optimism

(Reuters) - Gold prices pared gains on Tuesday after U.S. President Donald Trump confirmed he would meet with Chinese President Xi Jinping at an international summit, fanning hopes for a quick end to the U.S.-China trade dispute.

Earlier in the session, gold prices had briefly surged to 1% after central banks in Europe and the United States hinted at monetary easing.

Spot gold gained 0.5% to $1,345.70 per ounce as of 1:32 p.m. EDT (1732 GMT). Prices had risen to $1,354.20 earlier, before Trump said in a tweet he had a "very good telephone conversation" with China's Xi.

The two leaders will meet at the G20 meet later this month in Japan, where the discussions will focus on trade in the midst of a bitter tariff spat, that has upset global markets since its conception a year ago.

U.S. gold futures settled 0.6% higher at $1,350.7 per ounce.

"We are seeing a bit of a resurgent in risk appetites," said Bart Melek, head of commodity strategies at TD Securities in Toronto, adding that equities have moved higher, which has helped the dollar.

"Commodities on the risk side have gone up and gold has traded lower, on the back of the agreement between the U.S. and China on the trade side."

Equity markets rallied following Trump's comments while the dollar index held tight at two-week highs.

European Central Bank President Mario Draghi said the bank would need to ease policy again with tepid inflation, while markets expect the U.S. Federal Reserve to cut interest rates later this year.

"Traders are looking at an immediate future for easing money from central banks, which should see gold trading higher for the time being," said Bob Haberkorn, senior market strategist at RJO Futures.

Spot gold may break a support at $1,337 per ounce and fall to the next support at $1,324, according to Reuters technical analyst Wang Tao.

"As long as gold holds the $1,333 level intraday, it is good for bullion," said Michael Matousek, head trader at U.S. Global Investors. "Prices ran up after expectations from central banks, but there has been no definitive answers to retain those levels on an intraday basis."

Other precious metals rose as well, with silver gaining 1.1% to $15 per ounce and platinum up 1.4% at $802.75.

Palladium rose 2.2% to $1,481.51 per ounce, after hitting $1,489.03 the session, its highest level since March 27.

(Reporting by Karthika Suresh Namboothiri and Diptendu Lahiri in Bengaluru; Editing by Marguerita Choy and Richard Chang)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Gilead nears deal to buy Immunomedics for more than $20 billion, WSJ reports
Business

Gilead nears deal to buy Immunomedics for more than $20 billion, WSJ reports

(Reuters) - Gilead Sciences Inc is nearing a deal to buy biopharmaceutical company Immunomedics Inc for more than $20 billion, the Wall Street Journal reported on Saturday, citing people familiar with the matter. A deal for Immunomedics, which last month reported positive data from a late-stage study for its breast-cancer drug, could be announced Monday if not sooner, the Journal said https://www.wsj.com/articles/gilead-nears-deal-to-buy-immunomedics-for-more-than-20-billion-11599936777?mod=hp_lead_pos2. Gilead and Immunomedics did not respond immediately to emailed requests from Reuters for comment

China bans German pork imports after African swine fever case
Business

China bans German pork imports after African swine fever case

SHANGHAI (Reuters) - China banned pork imports from Germany on Saturday after it confirmed its first case of African swine fever last week, in a move set to hit German producers and push up global prices as China's meat supplies tighten. China's ban on imports from its third largest supplier comes as the world's top meat buyer deals with an unprecedented pork shortage after its own epidemic of the deadly hog disease. The ban on Germany, which has supplied about 14% of China's pork imports so far this year, will push up demand for meat from other major suppliers like the United States and Spain, boosting global prices.

Libya's Haftar committed to ending oil blockade, U.S. says
Business

Libya's Haftar committed to ending oil blockade, U.S. says

CAIRO (Reuters) - Libyan commander Khalifa Haftar has committed to ending a months-long blockade of oil facilities, the U.S.