|15 January, 2020

Gold inches up as U.S. says China tariffs in place till Phase 2 deal

Spot gold rose 0.1% to $1,547.23 per ounce by 0117 GMT

Image used for illustrative purpose. Ingots On Wooden Table.

Image used for illustrative purpose. Ingots On Wooden Table.

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Gold edged up on Wednesday, after a top U.S. official said tariffs on China would stay until a Phase 2 deal is completed, ahead of the signing of an interim trade deal between the two countries, while palladium scaled a record peak.

FUNDAMENTALS
Spot gold rose 0.1% to $1,547.23 per ounce by 0117 GMT; prices had touched their lowest since Jan. 3 at $1,535.63 on Tuesday. U.S. gold futures rose 0.2% to $1,547.80.

Palladium was flat at $2,193.58 an ounce after hitting a record peak of $2,204.29 earlier in the session.

U.S. Treasury Secretary Steven Mnuchin said on Tuesday the United States would keep in place tariffs on Chinese goods until the completion of a Phase 2 trade deal.

Mnuchin also said, the first phase of a trade agreement will be fully enforceable, including a pledge by China to refrain from manipulating its currency.

China has pledged to buy almost $80 billion of additional manufactured goods from the United States over the next two years as part of a tariff war truce, according to a source, though some U.S. trade experts call it an unrealistic target.

Asian stocks trod water as investors awaited signing of the Phase 1 deal, although comments from Mnuchin on tariffs somewhat cooled investor sentiment and triggered profit-taking.

U.S. consumer prices rose slightly in December even as households paid more for healthcare, and monthly underlying inflation slowed.

The Federal Reserve Bank of New York said on Tuesday it will continue to inject liquidity into the overnight lending markets for cash until at least mid-February while slightly reducing offerings on longer term loans.

Resolute Mining Ltd said on Wednesday it will sell its Ravenswood Gold mine for up to A$300 million ($207 million) to a consortium led by resource-focused private equity firm EMR Capital.

Elsewhere, silver shed 0.1% to $17.78 per ounce, while platinum advanced 0.2% to $985.00.

DATA/EVENTS (GMT)
0745    France    CPI (EU Norm) Final MM, YY     Dec
0930    UK         CPI YY                                    Dec
1100    EU         Reserve Assets Total                Dec
1900    US         Federal Reserve issues the Beige Book

(Reporting by Asha Sistla in Bengaluru; Editing by Shailesh Kuber)

© Reuters News 2020

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