Gold prices edged lower on Wednesday after the United States delayed tariffs on some Chinese imports, easing trade concerns, although political uncertainties and lingering global growth concerns limited losses for the safe-haven metal. Spot gold was down 0.1% at $1,499.89 per ounce, as of 0716 GMT.
US gold futures were down 0.2% at $1,510.80 an ounce. "Easing in trade tensions, geopolitical risks have provided some sort of hope in the markets which boosted equities, because of this there is a brief pullback in gold prices," said John Sharma, an economist with National Australia Bank.
US President Donald Trump on Tuesday backed off his Sept. 1 deadline for 10% tariffs on remaining Chinese imports, delaying duties on cellphones, laptops and other consumer goods, in the hopes of blunting the impact on US holiday sales. "Financial markets are starved for a bit of good news. China said it would hold trade talks by phone in two weeks, and the US saying it will delay some of the tariffs have driven a wave of profit-taking across safe-haven assets," Stephen Innes, managing partner, VM Markets wrote in a note.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 1.3% to 836.66 tonnes on Tuesday from Monday. Spot gold may retest a support at $1,480, following its failure to break a resistance at $1,524 per ounce, said Reuters technical analyst Wang Tao.
Comments
Comments are closed.