Gold holds steady
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.