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PRECIOUS-Gold rises on uncertainty over Sino-U.S. trade deal

Published 21/11/2019, 12:29 pm
PRECIOUS-Gold rises on uncertainty over Sino-U.S. trade deal
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Nov 21 (Reuters) - Gold prices rose on Thursday as a fresh spar between the United States and China over U.S. bills on Hong Kong ignited worries that trade talks could hit a snag and delay an interim deal.

FUNDAMENTALS

* Spot gold XAU= rose 0.2% to $1,474.24 per ounce by 0033 GMT, while U.S. gold futures GCv1 were flat at $1,474.10 per ounce.

* The U.S. House of Representatives on Wednesday passed two bills to back protesters in Hong Kong and send a warning to China about human rights, with President Donald Trump expected to sign them into law, despite delicate trade talks with Beijing. On Tuesday, the U.S. Senate passed a bill requiring annual certification of Hong Kong's autonomy and warning Beijing against violently suppressing protesters. China demanded Washington stop interfering in its internal affairs and said it would retaliate. A "phase one" trade deal could slide into next year, trade experts and people close to the White House said. Global shares slid as the row between Washington and Beijing over Hong Kong protests sparked worries that the trade negotiations could get rattled and delay a deal. MKTS/GLOB

* A divided U.S. Federal Reserve that decided to hit pause in its easing cycle following a rate cut in October signalled in minutes of last month's meeting that it was in no hurry to reassess the path of interest rates. China lowered its lending benchmark rate, as widely expected, to reduce company funding costs and shore up an economy hurt by slowing demand and U.S. trade tariffs. In the euro zone, a range of economic data for the second half of the year points to continuing moderate growth, one of the newest members of the European Central Bank's governing council said. South African mining firm AngloGold Ashanti ANGJ.J reached an agreement with Guinea's government to resume operations at its Siguiri gold mine, which were suspended last week, the Guinean mines minister said. Silver demand will creep up by 1% this year, reducing global oversupply to the lowest since 2015, as slowing global economic growth amid the tariff war has weakened demand for the industrial metal, consultancy Metals Focus said. Elsewhere, silver XAG= rose 0.1% to $17.16 per ounce, palladium XPD= edged up 0.1% to $1,768.87 per ounce and platinum XPT= advanced 0.1% to $917.97 per ounce.

DATA/EVENTS (GMT) 0745 France Business Climate Mfg

Nov 1330 US

Initial Jobless Claims

Weekly 1330 US

Philly Fed Business Indx Nov 1500 US

Existing Home Sales

Oct 1500 EU

Consumer Confid. Flash

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