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Gold slips from 1-month peak on Sino-US trade talk hopes
GOLD prices edged lower on Wednesday, retreating from a one-month peak hit in the previous session as optimism surrounding trade talks between Washington and Beijing soothed investor concerns, boosting global stocks and the dollar.
Spot gold fell 0.2 per cent to US$1,295.02 an ounce by 0501 GMT. US gold futures edged 0.1 per cent lower to US$1,295.50 an ounce.
"Gold is restrained as people are still interested in the dollar. The US$1,300 level also looks like a good resistance," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
The dollar held firm in early Asian trading, having been supported on Tuesday by US President Donald Trump downplaying the recent escalation in his trade war with China as "a little squabble" and insisting that talks between the two countries had not collapsed.
A stronger dollar makes gold more expensive for holders of non-US currency. Simultaneously, Asian stocks also turned cautiously optimistic surrounding trade developments between the two countries on Wednesday, while still not completely discounting the possibilities of a protracted spat.
"The (gold) market is holding because some people bought gold especially after the Chinese government also raised tariffs on US goods," Mr Fung said, adding that the metal is expected to remain range-bound between US$1,280 and US$1,310 an ounce.
"The ongoing Sino-US trade dispute has illustrated cooling conditions as both parties expressed willingness to resolve existing trade differences," Phillip Futures analysts wrote in a note.
Among other precious metals, silver fell 0.3 per cent to US$14.74 an ounce, while platinum fell 0.4 per cent to US$851.95. Palladium edged 0.1 per cent higher to US$1,337.40. REUTERS