PRECIOUS-Gold eases as trade optimism offsets U.S. political uncertainty

Published 20/12/2019, 12:35 am
© Reuters.  PRECIOUS-Gold eases as trade optimism offsets U.S. political uncertainty
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-
GLD
-
USDIDX
-
XPD/USD
-

(Updates prices)

* U.S. Senate widely expected not to remove Trump from office

* Gold range-bound in $1,465-$1,480 level- analyst

* China unveils new list of tariff exemptions on U.S. goods

* SPDR Gold Trust holdings rise

By Eileen Soreng

Dec 19 (Reuters) - Gold eased on Thursday as optimism surrounding U.S.-China trade ties offset support from political uncertainty stemming from the U.S. House of Representatives' vote to impeach President Donald Trump.

Spot gold XAU= dipped 0.1% to $1,474.34 per ounce as of 1326 GMT. U.S. gold futures GCcv1 were unmoved at $1,478.20.

"We do have optimism over the phase one trade deal," said FXTM analyst Lukman Otunuga.

"Until we have anything new in the picture, gold is going to continue trading within a tight range ... Resistance (lay) around the $1,480 level and support around $1,465."

China on Thursday announced a new list of import tariff exemptions for six chemical and oil products from the United States, days after the world's two largest economies announced an interim trade deal. all existing tariffs are fully rolled back, concerns about slowing global growth are going to remain a major theme supporting gold prices, Otunuga added.

The tariff dispute has weighed on economic growth worldwide and hurt business investment and confidence, largely fuelling bullion's near 15% rise this year.

Investors also kept a close eye on political proceedings in Washington, where the Democratic-led House of Representatives formally charged Trump with abuse of power and obstruction of Congress in a historic step that will inflame partisan tensions across a deeply divided America. the Republican-controlled Senate is widely expected not to convict Trump and remove him from office.

If the U.S. Senate convicts Trump, "which would be unexpected, that throws next year's election into a very uncertain place," Ilya Spivak, a senior currency strategist at DailyFx said, adding the resultant aversion towards riskier asset could benefit gold.

The yellow metal is often seen as an alternative investment during times of political and financial uncertainty.

Although the reaction to the impeachment was largely muted, world stocks drifted down from the week's record highs, while the U.S. dollar .DXY eased slightly against a basket of currencies. MKTS/GLOB USD/

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose 0.3% to 883.29 tonnes on Wednesday. GOL/ETF

Elsewhere, palladium XPD= was flat at $1,922.63 an ounce. Prices of the autocatalyst metal hit an all-time peak of $1,998.43 on Tuesday, within a whisker of breaking above $2,000 for the first time due to a gaping supply deficit. XAG= was down 0.2% at $16.97 per ounce, while platinum XPT= slipped 0.5% to $930.75.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.