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Monday, Nov 18, 2019

Gold hovers near one-month low after China, US agree on tariff roll-back

The trade war between the two economies of US and China has roiled financial markets and spurred fears of a global economic slowdown, pushing the yellow metal over 14% higher this year.

business Updated: Nov 08, 2019 08:10 IST
Reuters
Reuters
Reuters
Gold bars and coins stacked in the safe-deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder/Files
Gold bars and coins stacked in the safe-deposit boxes room of the Pro Aurum gold house in Munich, Germany, August 14, 2019. REUTERS/Michael Dalder/Files(Reuters File Photo )
         

Gold prices on Friday hovered near a one-month low hit in the previous session after China and the United States agreed to roll back tariffs as part of the first phase of a trade deal, stoking investors towards riskier assets.

FUNDAMENTALS

* Spot gold was flat at 1,467.92 per ounce at 0107 GMT after falling to its lowest level in over a month on Thursday.

* US gold futures were up 0.2% at $1,469.60 per ounce.

* China and the United States have agreed to roll back tariffs on each others’ goods as part of the first phase of a trade deal, officials from both sides said on Thursday, offering a new sign of progress despite ongoing divisions about the months-long dispute.

* However, the ‘phase one’ deal faced fierce internal opposition at the White House and from outside advisers over concerns whether rolling back tariffs will give away US leverage in the negotiations, multiple sources familiar with the talks told Reuters.

* The trade war between the two economies has roiled financial markets and spurred fears of a global economic slowdown, pushing the yellow metal over 14% higher this year.

* MSCI’s gauge of stocks across the globe rose slightly to stand at 543.70, near record high of 550.63 touched in January 2018.

* In the bond markets, the benchmark 10-year note yields on Thursday rose to 1.973%, the highest since Aug. 1.

* Giving some positivity to the economic scenario, the number of Americans filing applications for unemployment benefits fell more than expected last week, consistent with strong labour market conditions and continued job growth.

* Meanwhile, the dollar index against a basket of six major currencies stood at 98.136, also up 1% this week.