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PRECIOUS-Gold falls as U.S.-China trade deal hopes whet risk appetite

Published 15/11/2019, 07:10 pm
© Reuters.  PRECIOUS-Gold falls as U.S.-China trade deal hopes whet risk appetite
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(Updates prices)

* U.S. retail sales, industrial production due later in the day

By Sumita Layek

Nov 15 (Reuters) - Gold prices fell on Friday as risk appetite was whetted by comments from White House economic adviser Larry Kudlow that the United States is nearing an interim trade pact with China.

Spot gold XAU= was down 0.5% at $1,464.17 per ounce, as of 0754 GMT, but was set to rise about 0.4% this week.

U.S. gold futures GCv1 were down 0.6% at $1,464.30 per ounce.

Asian stocks jumped, denting bullion's safe-haven appeal, tracking a record S&P 500 finish, as hopes revived that the world's top two economies were nearing a phase 1 deal. MKTS/GLOB

Kudlow said on Thursday, an agreement could come soon. is optimism in the market that the first phase of the trade deal will be signed soon. So, gold and silver prices are falling," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers, adding prices could fall up to $1,420.

A steady dollar index .DXY against a basket of six major currencies also weighed on the bullion.

Gold prices have gained more than 14% this year as the on-again, off-again trade spat has roiled financial markets and prompted fears of a global economic slowdown.

A Reuters poll of economists showed a permanent truce is unlikely over the coming year, and, while concerns have eased over a U.S. recession, an economic rebound is also not expected soon. Spivak, a senior currency strategist at DailyFx said, risks associated with the political and economical issues like Brexit, Hong Kong and trade talks are "too great for something not to go wrong," and these risks will put a floor under gold prices and if something goes really wrong then prices will go higher.

In Hong Kong, anti-government protesters paralysed parts of the financial hub for a fifth day. are now awaiting the U.S. retail sales and industrial production data for the previous month, expected later in the day.

Among other precious metals, silver XAG= was down 0.8% to $16.87 per ounce. It was poised to gain 0.5% this week, while platinum XPT= dipped 0.3% to $877.26 per ounce and was set to register a weekly decline of 1%.

Palladium XPD= shed 0.3% to $1,731.08 per ounce, enroute to fall 0.8% this week.

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