🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

PRECIOUS-Gold gains as souring U.S.-China relations hit risk appetite

Published 20/11/2019, 11:11 pm
© Reuters.  PRECIOUS-Gold gains as souring U.S.-China relations hit risk appetite
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-
XPD/USD
-

* China condemns U.S. Senate measure on Hong Kong

* U.S. Fed's October minutes due at 1900 GMT

* Gold could rise into range of $1,480-$1,485 -technicals (Updates prices)

By Asha Sistla

Nov 20 (Reuters) - Gold prices rose to their highest levels in nearly two weeks on Wednesday as U.S. Senate action on Hong Kong created a potential obstacle to a trade deal between the United States and China, denting appeal for riskier assets.

Spot gold XAU= was rose 0.2% to $1,475.83 per ounce at 1139 GMT and U.S. gold futures GCcv1 was up 0.1% at $1,476.20.

"The U.S. senate passing the Hong Kong democracy bill is raising further risk of a trade deal running into problems and it's causing some renewed risk-off in the markets," said Saxo Bank commodity strategist Ole Hansen.

"We see stocks trading weaker, bond yields moving lower and gold is ticking higher."

The U.S. Senate passed two bills backing human rights in Hong Kong and banning export of certain munitions to the region's police forces. China condemned the move and called for Washington to stop meddling in its internal affairs. stocks edged away from their recent peak. U.S. 10-year bond yields slipped to their lowest in nearly three weeks, also pressured by U.S. President Donald Trump's threat to raise tariffs on Chinese imports if a trade deal cannot be reached with Beijing. .EU US/ are also waiting for the minutes from the U.S. Federal Reserve's October policy meeting, due at 1900 GMT, for additional cues on the monetary policy outlook. U.S. central bank cut interest rates three times this year to help sustain U.S. growth but last month signalled that there would be no further cuts unless the economy takes a turn for the worse. market is pricing in one cut over the next 12 months and that will change very quickly on failure to reach a (trade) deal," Saxo Bank's Hansen added. FEDWATCH

Lower interest rates reduce the opportunity cost for holding non-yielding bullion.

Spot gold could rise into a range of $1,480-$1,485 an ounce, according to Reuters technical analyst Wang Tao. TECH/C

Silver XAG= was flat at $17.15, platinum XPT= edged 0.1% higher to $911.16 and palladium XPD= rose 0.2% to $1,766.37.

Palladium prices could continue to firm on supply issues, and $2,000 an ounce is a likely scenario for the autocatalyst metal next year, said Ross Norman, a London-based independent analyst.

The metal hit a record high of $1,824.50 on Oct. 30, buoyed by a sustained supply deficit.

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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.