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PRECIOUS-Gold slips as U.S.-China deal hopes cheer stock markets

Published 16/11/2019, 12:02 am
© Reuters.  PRECIOUS-Gold slips as U.S.-China deal hopes cheer stock markets
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(Updates prices)

* Gold, silver eye weekly gain; platinum, palladium set for falls

* U.S. retail sales, industrial production data awaited

By Eileen Soreng

Nov 15 (Reuters) - Gold prices fell on Friday as a White House official's comments rekindled hopes of a U.S.-China trade deal and boosted appetite for riskier assets, but bullion was still on course for a weekly gain.

Spot gold XAU= was down 0.5% at $1,464.40 per ounce at 1240 GMT, though up about 0.4% on the week.

U.S. gold futures GCcv1 were down 0.6% at $1,464.70 per ounce.

White House economic adviser Larry Kudlow said late on Thursday that the United States and China were getting close to a deal and the "mood music is pretty good." from the White House economic adviser are injecting renewed optimism surrounding the prospects of a trade deal," said FXTM market analyst Han Tan, adding, if there are significant bouts of risk-on sentiment, gold could break below the $1,450 support level.

Hopes of a trade deal between Washington and Beijing sent world stock markets and other risk assets higher. MKTS/GLOB

Gold's trajectory is still very much hinged on the outcome of the ongoing trade talks and any decline in gold will be contained until there is official confirmation that a deal is signed, Tan said.

Gold prices have gained more than 14% this year as the trade spat between the world's biggest economies roiled financial markets, stoking fears of a global economic slowdown and prompting major central banks to reduce interest rates.

Market sentiment soured earlier this week after U.S. President Donald Trump on Tuesday said he could impose substantial new tariffs on China if no deal was reached. will have a first positive signal if the price climbs above $1,470, while another fall below $1,445 would denote sellers dominating while markets wait for further news on the trade war or further input from central banks, particularly from the (U.S.) Federal Reserve," Carlo Alberto De Casa, chief analyst at ActivTrades said in a note.

Among other precious metals, silver XAG= fell 0.9% to $16.86 per ounce, on course for a gain of about 0.3% this week.

Platinum XPT= inched 0.1% higher to $881.53 per ounce and was set to register a fall of about 0.6% this week.

Palladium XPD= was down 0.3% at $1,731.85 per ounce, on course to fall about 0.6% this week.

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