Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

PRECIOUS-Gold steadies as investors seek clarity on U.S.-China trade deal

Published 17/12/2019, 12:05 am
© Reuters.  PRECIOUS-Gold steadies as investors seek clarity on U.S.-China trade deal
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-
DXY
-
XPD/USD
-

(Updates prices)

* Stock markets rise, trade below record high

* Palladium rises 1.2%, holds above $1,950/oz

* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl

By Eileen Soreng

Dec 16 (Reuters) - Gold prices steadied on Monday as a weaker dollar and a lack of details on the "phase one" U.S.-China trade deal offset pressure from gains in the stock markets.

Spot gold XAU= inched 0.1% higher to $1,477.31 per ounce by 1254 GMT. U.S. gold futures GCcv1 were also up 0.1% at $1,481.90.

"Based on gold's reaction, it appears the market is not very convinced about the deal... in the sense that this is not really a breakthrough in terms of lifting growth globally, in the U.S. or China," said Julius Baer analyst Carsten Menke.

"Gold market investors are still a bit sceptical about the growth outlook next year so they prefer to hold onto their positions."

The deal, announced on Friday, will reduce some U.S. tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural, manufactured and energy products by some $200 billion over the next two years.

The news pushed up world stock markets, which were trading a notch below a record high hit last week. MKTA/GLOB

U.S. Trade Representative Robert Lighthizer on Sunday said U.S. exports to China will nearly double over the next two years, although officials are yet to decide a date to sign the agreement. still remain concerns about what this deal entails and how much this phase one trade deal will alleviate the downward pressure on the global economy going into 2020," said FXTM market analyst Han Tan.

Gold has risen 15% this year on the backdrop of the months-long tariff war and its impact on the global economy.

Data on Monday showed euro zone business growth remained weak in December. outlook (for gold) is for strong support at $1,474 then $1,411 with a rally to $1,500-$1,511, and $1,544 in extension," said Nicholas Frappell, global general manager at ABC Bullion.

Also, the dollar .DXY eased against a basket of rivals, making gold cheaper for holders of other currencies. USD/

Speculators slashed their bullish positions in COMEX gold contracts in the week to Dec. 10. CFTC/

Elsewhere, palladium XPD= climbed 1.2% to $1,954.21 an ounce. The autocatalyst metal hit a record high of $1,979.95 on Friday driven by supply concerns.

Silver XAG= gained 0.5% to $17.02 per ounce, while platinum XPT= was up 0.3% at $930.36.

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.