Gold Prices Steady as Proposed U.S.-China Talks Give Hope
Gold prices were steady on Thursday amid news of possible U.S.-China trade talks but were held down by a stronger U.S. dollar.
Comex gold futures for December delivery rose 0.07% to $1,211.70 a troy ounce as of 5:08 AM ET (9:08 GMT).
The U.S. is proposing fresh trade talks with China later this month in an effort to stave off new tariffs.
U.S. President Donald Trump has threatened impose tariffs on almost all Chinese imports, or about $467 billion in goods, while China is planning to ask the WTO for permission to impose sanctions on the U.S. at a meeting next week.
Trade conflict between the U.S. and China continued to drive investors to buy the dollar, driving down the price of gold as traders feel that the U.S. has less to lose in a trade war. Gold prices have been stuck in the $1,200 range for the past two weeks as investors turn to the safe-have appeal of the greenback.
Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Investors are also waiting for consumer prices data later in the day for clues on Federal Reserve monetary policy. The data comes a day after an unexpected drop in producer prices. Still, the Fes is expected to increase rates in September.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.12% to 94.93.
Other metals were mostly higher on the Comex, with silver futures up 0.12% to $14.310 a troy ounce. Among other precious metals, Platinum Futures rose 0.59% to $804.60 while Palladium Futures increased 0.12% to $966.20 an ounce. Copper futures surged 1.12% to $2.706 a pound.