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PRECIOUS-Gold steady as uncertainties linger after U.S.-China trade deal

Published 16/01/2020, 01:02 pm
© Reuters.  PRECIOUS-Gold steady as uncertainties linger after U.S.-China trade deal
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Jan 16 (Reuters) - Gold prices held steady on Thursday as investors remained concerned about existing tariffs and unresolved issues after Washington and Beijing signed a partial trade deal.

FUNDAMENTALS

* Spot gold XAU= edged 0.1% higher to $1,556.69 per ounce by 0140 GMT. U.S. gold futures GCv1 rose 0.2% to $1,556.40.

* In other precious metals, palladium XPD= rose 0.1% to $2,264.65 an ounce after hitting a record peak of $2,284.00 earlier in the session, while platinum XPT= fell 0.2% to $1,018.43, after hitting a near two year peak at $1,027.44 earlier.

* U.S. President Donald Trump and Chinese Vice Premier Liu He signed a deal on Wednesday, defusing an 18-month row between the world's two largest economies. However, the interim deal fails to address structural economic issues that led to the trade conflict, does not fully eliminate the tariffs that have slowed the global economy, and sets hard-to-achieve purchase targets, analysts said. nL1N29K0MV]

* Gold prices had gained 18% last year on the back of the trade war and its impact on global economy.

* Adding to concerns, China's pledge to buy U.S. farm goods based on "market conditions" during the deal signing ceremony spurred doubts among farmers and commodity traders over Beijing's lingering tariffs on U.S. exports. World stocks inched to a record high as the Phase 1 deal reduced uncertainties that beset financial markets. MKTS/GLOB

* The Democratic-led House of Representatives voted on Wednesday to send two formal charges against Trump to the Senate. U.S. Federal Reserve expressed confidence that borrowing costs are at the right level to sustain growth and lift inflation to healthier levels, despite what businesses say is a lingering drag from uncertainty over U.S. trade policy. Mali's industrial gold production rose 7% in 2019 to a record 65.1 tonnes, mines ministry statistics showed on Wednesday. Holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust GLD rose 0.43% to 878.32 tonnes on Wednesday. GOL/ETF

* Silver XAG= was flat at $17.99 per ounce. DATA/EVENTS (GMT) 0700 Germany HICP Final YY

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