1 min read.Updated: 29 Mar 2019, 12:29 PM ISTReuters
If there is positive outcome from US-China trade talks, gold prices could come under some pressure: Analysts
The two countries started a new round of talks on Thursday to end the year-long tit-for-tat tariffs war
Gold prices steadied on Friday, but was headed for its worst month since August 2018 predominantly on stronger dollar and equities, while palladium bounced back after three straight sessions of sharp selloffs. Spot gold was flat at $1,290.34 per ounce, after declining about 1.5% in the previous session, the most in over seven months.
The metal is set for its first weekly fall in four and has lost about 1.7% this month. But on a quarterly basis, gold is on path for a second straight rise, due to a dovish US Federal Reserve and concerns about a global economic slowdown.
US gold futures were down 0.1% at $1,288.70 an ounce.
The dollar was poised for its strongest monthly gain in five, while Asian shares rose on hopes that Washington and Beijing are making progress in trade talks.
The world’s two largest economies started the new round of talks on Thursday to end the year-long tit-for-tat tariffs war.
“If we have a positive outcome from the trade talks, gold will be under pressure as investors will rotate out into more risk seeking assets,” said Jeffrey Halley, a senior market analyst with OANDA.
“But, if we have disappointing outcome then stocks will go down and people will move into safe-haven assets like gold. The market is very much in a wait and see mode.”