Gold holds steady

The Herald (Zimbabwe) - - Business -

BENGALURU. — Gold prices yes­ter­day held steady near a more than one-week high hit in the pre­vi­ous ses­sion, amid hopes for a new round of US-China trade talks, but a firmer dol­lar kept gains in check.

Spot gold was lit­tle changed at $1 205,78 an ounce at 0758 GMT, af­ter hit­ting its high­est since 31 Au­gust at $1 208,48 on Wed­nes­day. The bul­lion gained 0,7 per­cent in the pre­vi­ous ses­sion, in its biggest sin­gle-day rise since 24 Au­gust.

Se­nior US of­fi­cials sent an in­vi­ta­tion to their Chi­nese coun­ter­parts to hold an­other bi­lat­eral trade meet­ing, rais­ing spec­u­la­tion about a sub­tle shift in Washington’s pol­icy.

The out­reach comes as more than 85 U.S. in­dus­try groups launched a coali­tion on Wed­nes­day to take a fight public against Pres­i­dent Don­ald Trump’s trade tar­iffs.

“Signs of move­ment in Sino-US trade talks is the prox­i­mate cause (for steady prices), with a mar­ket that is still short and prob­a­bly more sen­si­tive to news, favour­ing the up­side for gold,” said Ni­cholas Frappell, global gen­eral man­ager at ABC Bul­lion, Aus­tralia.

The months-long trade rift be­tween U.S. and China has prompted in­vestors to buy the U.S. dol­lar in the be­lief that the United States has less to lose from the dis­pute.

This has driven in­vestors to­wards record short po­si­tions in Comex gold and heavy liq­ui­da­tions in gold ex­change traded funds.

Gold prices have fallen nearly 12 per­cent since a peak in April amid in­ten­si­fy­ing global trade ten­sions and un­der pres­sure from ris­ing US in­ter­est rates. — Reuters.

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