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PRECIOUS-Gold gains as Hong Kong tensions fuel trade deal doubts

Published 28/11/2019, 06:27 pm
© Reuters.  PRECIOUS-Gold gains as Hong Kong tensions fuel trade deal doubts
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(Updates prices, adds comment and details)

* China condemns U.S. move, warns of "firm counter measures"

* Palladium hits all-time high of $1,836.61

* Yen gains versus dollar

By Sumita Layek

Nov 28 (Reuters) - Gold prices rose on Thursday as investors bought the safe-haven metal on doubts about whether the United States and China will seal a trade deal after President Donald Trump signed a legislation supporting Hong Kong protesters.

Palladium retreated slightly after hitting an all-time peak of $1,836.61 earlier in the session.

Spot gold XAU= was up 0.1% at $1,455.63 per ounce by 0659 GMT. U.S. gold futures GCcv1 rose 0.1% to $1,454.80.

Trump on Wednesday signed a legislation into law that requires the State Department to certify, at least annually, that Hong Kong retains enough autonomy to justify favourable U.S. trading terms. condemned the move and said it would take "firm counter measures." the latest developments of Trump signing the Hong Kong bill, there are doubts that there will be any deal, even a first phase," said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.

"Even though they've said they will sign a deal by year-end, they've not talked about the venue, or who will go to whom. So, I don't think the trade deal will be signed so easily and gold will be supported."

Asian shares fell, while the safe-haven yen rose against the dollar on concerns that the protracted tariff dispute between the world's two biggest economies could become more complicated. MKTS/GLOB USD/

Gold eased 0.5% in the last session on a raft of upbeat economic data from the United States. Economic growth picked up slightly in the third quarter, weekly jobless claims fell, while new orders for key U.S.-made capital goods increased. growth concerns have definitely eased, but not gone," said John Sharma, an economist at National Australia Bank, adding gold would remain supported even if an interim deal is passed since the most complex issues, such as intellectual property, have been pushed down the road.

Gold, considered a safe store of value during economic or political uncertainties, has gained more than 13% this year, mainly due to the tariff dispute.

Among other precious metals, palladium XPD= shed 0.1% to $1,831.69 per ounce.

The autocatalyst metal used in vehicle exhaust systems to reduce harmful emissions has risen about 45% this year on a supply crunch.

"Strong demand from China and sluggish supply growth have tightened palladium's physical market this year...," ANZ said in a note.

Platinum XPT= was flat at $892.95 per ounce and silver XAG= rose 0.1% to $16.96 per ounce.

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