Gold prices fall as dollar holds steady

Gold prices inched lower on Tuesday as the dollar steadied amid fears of a slowdown in global economic growth and increasing pessimism due to a likely worsening of U.S-China trade dispute ahead of the G20 meet.

Fundamentals

Spot gold was down 0.1 percent at $1,220.81 per ounce at 0126 GMT. U.S. gold futures were flat at $1,222.2 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was steady at 97.05.

Asian shares battled to extend a global rebound on Tuesday after U.S. President Donald Trump seemed to quash hopes of a trade truce with China, dampening risk appetite across the region.

Trump said on Monday he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent and repeated his threat to slap tariffs on all remaining imports from China.

Prime Minister Theresa May warned on Monday that Britain would be thrust into the unknown if parliament rejects the Brexit deal she has negotiated with the European Union, as lawmakers from all sides lined up to criticize the agreement.

The Italian government said on Monday it was sticking to its main 2019 budget goals for now, as it awaits a cost analysis of its main spending measures, but left open the possibility of eventually cutting its deficit target.

The euro zone has lost some growth momentum but this was mostly normal and not enough to derail plans by the European Central Bank to dial back stimulus further, ECB President Mario Draghi and two of his top lieutenants said on Monday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.15 percent to 761.74 tonnes on Monday.

Hedge funds and money managers cut their net short positions in Comex gold and silver contracts in the week to November 20, the U.S. Commodity Futures Trading Commission (CFTC) said on Monday.

China’s net gold imports in October via main conduit Hong Kong more than doubled from a more than seven-year low touched the previous month as lower prices revived demand in the world’s top consumer of bullion.

Source: Reuters

Comments
Loading...