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Home Uncategorized Gold prices steady amid trade war fears, Britain-Russia tensions

Gold prices steady amid trade war fears, Britain-Russia tensions

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Gold prices on Thursday were steady near a one-week high hit in the previous session amid political tensions between Britain and Russia, and renewed worries about a global trade war.

Spot gold was nearly flat at $1,325.06 per ounce at 0741 GMT, while US gold futures for April delivery were almost unchanged at $1,325.20 per ounce.

“Gold has been supported by geopolitical factors as well as dollar weakness … Stock markets were down overnight, we’ve got a bit of risk-aversion coming back in,” said a Hong Kong based trader. He declined to be identified as he was not authorised to speak with media.



Asian stocks sagged while government bonds attracted safe-haven demand amid mounting investor concerns that growing trade tensions will hurt the global economy.

The Trump administration is pressing China to cut its trade surplus with the United States by $100 billion, a White House spokeswoman said on Wednesday, clarifying a tweet last week from President Donald Trump.

On Wednesday, geopolitical tensions rose after the Russian Foreign Ministry said it would retaliate after 23 of its diplomats were expelled by British Prime Minister Theresa May over a chemical attack on a former Russian double agent in England that May blamed on Moscow.

US television commentator and conservative economic analyst Larry Kudlow will replace Gary Cohn as President Donald Trump’s top economic adviser, adding another loyalist to Trump’s inner circle.

“I think Kudlow’s comments will probably support more of a trade war rhetoric than a stronger dollar,” the trader said, adding “gold needs to close above the $1,330 level to start getting some traction”.



Trump also spooked investors on Tuesday by firing Secretary of State Rex Tillerson, who was viewed as a supporter of free trade.

“The market continues to trade the range with Asian buyers stepping in under $1,320 and speculator profit-taking and producer selling capping the topside around $1,330-$1,335,” said MKS PAMP Group trader Alex Thorndike.

“Gold will likely remain range-bound into next week’s US Federal Reserve meeting, with the market eagerly anticipating a first rate rise for the year, given the economy’s improved data.”



Spot gold is biased to retrace towards support at $1,317 per ounce, as it seems to have finished a bounce triggered by this level, according to Reuters technical analyst Wang Tao.

Meanwhile, silver rose 0.3 per cent to $16.54 per ounce and platinum gained 0.2 per cent to $960.30 per ounce.

Palladium edged 0.2 per cent higher to $989.30 per ounce after hitting $1,006.30 an ounce in the previous session, its highest since March 1.

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