Gold prices were steady on Tuesday, holding below a more than two-month peak hit in the previous session, as weakness in the dollar countered optimism about the United States and China signing an interim trade deal soon.
FUNDAMENTALS
Spot gold was little changed at $1,515.23 per ounce by 0044 GMT. Prices hit their highest since Oct. 25 at $1,516.20 in the previous session. US gold futures were unchanged at $1,518.30.
Gold prices are set to post their best year since 2010, having gained about 18 per cent, mainly driven by a tariff war between the world’s two largest economies and quantitative easing by major central banks.
The dollar edged lower against a basket of rivals, making gold cheaper for holders of other currencies. On Friday, the index suffered its biggest one-day fall since March.
The White House’s trade adviser said on Monday the US-China Phase 1 deal would be signed next week, but said confirmation would come from President Donald Trump or the US Trade Representative.
The South China Morning Post reported on Monday Chinese Vice Premier Liu He would visit Washington this week to sign the deal.
Speculators raised their bullish positions in COMEX gold contracts in the week to Dec. 24.
China’s net gold imports via Hong Kong in November plunged 72 per cent from the previous month to their lowest in nearly nine years, data from the Hong Kong Census and Statistics Department showed on Monday.
Among other precious metals, silver rose 0.1 per cent to$17.93 per ounce, while platinum gained 0.4 per cent to $961.27 and palladium edged up 0.1 per cent at $1,907.66 per ounce.
Source: Economic Times
