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Published on 12/11/2019 8:39:34 AM | Source: Reuters

Gold slips as hopes of U.S.-China trade progress lift stocks

Posted in Commodity Top News| #Gold #China #Commodity #US

By Karthika Suresh Namboothiri

Gold prices eased on Tuesday as expectations of positive trade talks between the United States and China bolstered risk appetite, while investors booked profits.

Spot gold slipped 0.1% to $1,454.82 per ounce as of 1033 GMT, extending declines into a fourth straight session.

U.S. gold futures dropped 0.1% to $1,455.60 per ounce.

World markets edged higher on Tuesday as investors awaited a speech by U.S. President Donald Trump on trade policy, and amid news he will probably delay a decision on whether to slap tariffs on European autos.

EU officials said Trump was expected to announce this week he was delaying the tariff decision on cars and auto parts imported from the European Union likely for another six months, also boosting expectations about the president's speech later in the day about the long-drawn trade war with China.

"(The trade talks are) probably going to end in a truce, but that could change with a tweet. So we will continue to have that nervousness in the background," said ABN Amro analyst Georgette Boele, adding that gold's dip was largely due to profit-taking.

"We are close to quite an important level. From a technical point of view, $1,450 was a breakout level."

Last week, officials from China and the United States said they had a deal to roll back tariffs, only for Trump to deny any pact had been agreed.

"Bullion was heavily sold on growing expectations of a trading deal between the U.S. and China, and also due to the strengthening of the greenback," said Carlo Alberto De Casa, chief analyst at ActivTrades, in a note.

"The breakdown of the support level of $1,480 has triggered some profit-taking, with investors willing to bring home gains achieved in the first part of the year after this correction."

However, violent protests in Hong Kong over the weekend kept investors anxious, knocking Asian shares down for two straight sessions.

Hong Kong police fired tear gas in the heart of the Central financial district on Tuesday and at two university campuses after territory-wide transport disruptions wreaked commuter havoc in the Chinese-ruled city.

Elsewhere, palladium gained 0.8% to $1,701.01 per ounce, silver dropped 0.5% to $16.77 an ounce, and platinum eased 0.3% to $872.94.

(Additional reporting by Nakul Iyer in Bengaluru; Editing by Dale Hudson)