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PRECIOUS-Gold edges up ahead of Sino-U.S. trade talks

Published 07/10/2019, 05:26 pm
PRECIOUS-Gold edges up ahead of Sino-U.S. trade talks
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* U.S.-China trade talks to happen in Washington on Oct. 10-11

* China foreign reserves dip in Sept (Adds technicals, details; updates prices)

By Karthika Suresh Namboothiri

Oct 7 (Reuters) - Gold prices ticked up on Monday as investors were cautious ahead of this week's Sino-U.S. trade talks following a report that Beijing would likely disagree to a broad trade deal with the United States.

Spot gold XAU= inched 0.1% higher to $1,505.38 per ounce, as of 0612 GMT. Prices had firmed 0.5% last week on fears of cooling global growth.

U.S. gold futures GCcv1 slipped 0.1% to $1,511.00 per ounce.

The next round of U.S-China trade talks are set to be held in Washington on Oct. 10-11, although hopes of progress diminished after a report that Chinese officials wanted the scope of this week's negotiations to be narrow. is uncertainty regarding the trade negotiations. China seems to be very reluctant to agree, said Margaret Yang Yan, a market analyst at CMC Markets. "There is demand for safe haven assets, which reflects a very cautious mood towards the trade deal."

The long-drawn trade tussle between the world's two largest economies has toppled markets globally and triggered fears of a possible recession.

"Gold has been in a range of less than $100. It will take a strong catalyst to bring gold out of this channel," Yan said, adding that quantitative easing by the U.S. Fed, European Central Bank and Bank of Japan could be a major factor.

Jobs growth in the United States slowed in September and wage growth stalled, even as unemployment dropped to a 50-year low, a report on Friday showed. that did little to change market expectations that the U.S. Federal Reserve will likely cut interest rates at its next policy review on Oct. 29-30 to support the economy.

Meanwhile, China's foreign exchange reserves fell more than expected in September amid a cooling domestic economy and the rising trade tensions. gold may test a support at $1,488 per ounce, a break below which could cause a fall towards the range of $1,446-$1,462, said Reuters technical analyst Wang Tao. other metals, platinum XPT= rose 0.3% to $878.87, silver XAG= dipped 0.1% to $17.54 and palladium XPD= was little changed at $1,665.67.

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