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Gold Prices Slip; Still Hovers Above $1,310 on Global Growth and Trade Concerns

Published 11/02/2019, 05:06 pm
Updated 11/02/2019, 05:11 pm
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Investing.com - Gold prices slipped on Monday in Asia as the U.S. dollar edged up. The precious metal remained above $1,310 as concerns on global growth slowdown and increasing uncertainties surrounding the Sino-U.S. trade war continued to dent investors’ risk appetite.

Gold futures last traded at $1,314.85 on the Comex division of the New York Mercantile Exchange by 12:57 AM ET (05:57 GMT), down 0.1%.

Gold prices slid 0.27% last week, snapping two weeks of gains while the U.S. dollar recorded its biggest weekly increase since May 2018.

The precious metal is often sensitive to movements in the dollar. A stronger greenback is seen as a headwind for commodities priced in dollars as it makes them more expensive to holders of other currencies.

The gain in the dollar last week came after the European Commission sharply downgraded 2019 Eurozone growth forecast and triggered fears of a recession in the core Eurozone economies.

Increasing uncertainties surrounding the Sino-U.S. trade tension also kept investor sentiment in check.

A 90-day trade truce between Washington and Beijing is due to expire on March 1. If the deadline passes without a deal, President Donald Trump has said he could follow through on his threat to increase tariffs on Chinese goods.

Last week, Trump said that he had no plans to meet with Chinese President Xi Jinping before the March 1 deadline to achieve a trade deal.

Elsewhere, precious metals traders will also be monitoring U.S. economic data for its impact on the greenback this week. Inflation figures, consumer and producer prices, and also retail figures are all due later this week.

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