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) - 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.
U.S. home sales fall as tight supply boosts prices | Reuters
France, Germany to agree to NATO role against Islamic State - sources | Reuters
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
China's Xi says navy should become world class | Reuters
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.