Gold up as US dollar slips against yen on trade issues

[BENGALURU] Gold rose on Friday as the dollar fell against the yen on fears that US President Donald Trump would take up trade issues with Japan as the markets braced for another round of US tarriffs on China.

Spot gold was up 0.2 per cent at US$1,202.43 at 0049 GMT.

US gold futures rose 0.3 per cent at US$1,207.60 an ounce.

The US dollar extended losses against the yen on Friday after CNBC television reported on Thursday that US President Donald Trump told a Wall Street Journal columnist he might take on trade issues with Japan.

Another big worry for investors was the end of a public consultation period over trade, after which US President Donald Trump could impose tariffs on an additional US$200 billion of Chinese goods.

China's commerce ministry warned that the country would retaliate against any new tariff measures. Mr Trump had said on Wednesday that the United States was not yet ready to come to an agreement with China.

Investors also awaited news from US-Canada talks about revamping the North American Free Trade Agreement (Nafta). A few stubborn issues stood in the way of a deal, including dairy, protection for media companies, and how to solve future trade disputes.

Markets will be closely watching a US employment report due on Friday for clues on the pace of interest rate increases by the Federal Reserve.

On Thursday, the ADP National Employment Report showed private payrolls increased by 163,000 jobs last month. Economists polled by Reuters had forecast private payrolls increasing by 190,000 jobs last month.

Emerging markets have been hit by financial crises in Argentina and Turkey. In Indonesia, the central bank has intervened in recent weeks to stem the rupiah's slide.

Gold-backed exchange-traded funds (ETFs) experienced outflows in North America during August, but recorded inflows in Europe and Asia as a strong US dollar helped weaken US gold prices, and investors hedged global trade risks and currency weakness, the World Gold Council said on Thursday.

The global platinum market will be oversupplied by 295,000 ounces this year as both supply and demand of the autocatalyst metal fall by 2 per cent, the World Platinum Investment Council (WPIC) said on Thursday.

REUTERS