Gold steadies on fresh U.S.-China trade worries

Tuesday,   11-Jun-2019   09:01 AM (IST)

Gold prices steadied on Tuesday following a steep fall in the previous session, as fresh concerns on Sino-U.S. trade unsettled the market optimism that followed a U.S.-Mexico deal. Spot gold was up 0.1% at $1328.77 as of 0137 GMT. U.S. gold futures were 0.3% higher at $1,333.40 an ounce. Gold fell over 1% in the previous session to an intra-day low of $1,324.50 after markets took heart from the deal between the United States and Mexico to avert yet another tariff war late last week. U.S. President Donald Trump on Monday said he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with China’s President at a Group of 20 summit later this month. Trump has repeatedly said he expected to meet Xi at the June 28-29 summit in Osaka, Japan although China is yet to confirm any such meeting. China is open for more trade talks with Washington but has nothing to announce about a possible meeting between the Chinese and U.S. leaders at this month’s G20 summit, the Foreign Ministry said on Monday. Trump also warned that if a portion of the U.S.-Mexico deal, which requires ratification by Mexican lawmakers, was not approved, “tariffs will be reinstated.” The dollar was largely steady against other major currencies on Tuesday, but investor appetite for risk was kept in check after Trump renewed his tariff threats towards China. Asian stocks made modest gains on Tuesday after the Trump administration shelved plans for tariffs against Mexico, lifting Wall Street, however, fresh U.S. trade threats against China are expected to limit any major investor sentiment boost. Gold production in Russia during the first four months of 2019 rose to 78.29 tonnes from 70.67 tonnes in the same period a year earlier, Russia’s finance ministry said on Monday.