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Gold dips on stronger dollar; Sino-U.S. trade spat in focus

Published 11/08/2020, 10:48 am
Updated 11/08/2020, 10:54 am
© Reuters.
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Aug 11 (Reuters) - Gold prices fell on Tuesday, weighed down by a stronger dollar as investors focused on the fiscal stimulus plan in the United States and escalating U.S.-China tensions ahead of key trade talks later this week.

FUNDAMENTALS

* Spot gold XAU= was down 0.3% at $2,021.32 per ounce by 0031 GMT. U.S. gold futures GCv1 eased 0.3% to $2,033.60.

* The dollar index .DXY rose 0.1% to hold near a one-week high against its rivals, making gold more expensive for holders of other currencies. USD/

* China imposed sanctions on 11 U.S. citizens including lawmakers from President Donald Trump's Republican Party in response to Washington's imposition of sanctions on Hong Kong and Chinese officials accused of curtailing political freedoms in the former British colony. U.S. Treasury Secretary Steven Mnuchin said companies from China and other countries that do not comply with accounting standards will be delisted from U.S. stock exchanges as of the end of 2021. U.S. congressional leaders and Trump administration officials said on Monday they were ready to resume negotiations on a coronavirus aid deal, but talks remained deadlocked as Democrats said Republicans needed to meet them in the middle. More than 20 million people have been reported to be infected by the novel coronavirus globally and 731,787​ have died, according to a Reuters tally. The economic crisis caused by the pandemic is falling hardest on the most vulnerable workers, and policymakers need to coordinate to come up with creative policies to help people, Chicago Federal Reserve Bank President Charles Evans said. Asian stocks were set for a cautious start, following a mixed Wall Street session. MKTS/GLOB

* Silver XAG= dropped 1.2% to $28.81 per ounce, platinum XPT= fell 0.9% to $978.10 and palladium XPD= rose 0.3% to $2,225.22.

DATA/EVENTS (GMT) 0830 UK

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