PRECIOUS-Gold slips as renewed trade optimism lifts risk appetite
Reuters
Published Oct 13, 2019 21:10
PRECIOUS-Gold slips as renewed trade optimism lifts risk appetite
Oct 14 (Reuters) - Gold prices eased on Monday, extending falls into a third session, as news that the United States and China had made progress in their recent high-level trade talks lifted risk appetite.
FUNDAMENTALS
* Spot gold XAU= dropped by 0.3% to $1,485.56 per ounce, as of 0036 GMT. U.S. gold futures GCcv1 edged 0.1% higher to $1,489.90.
* Spot gold prices fell more than 1% in intraday trade on Friday on news that the United States and China were likely to reach a partial agreement on trade.
* U.S. President Donald Trump on Friday outlined the first phase of a deal and suspended a threatened tariff hike, but officials on both sides said much more work needed to be done before an accord could be agreed. The possible deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months. MKTS/GLOB
* This renewed appetite for riskier assets, with MSCI's broadest index of Asia-Pacific shares ex-Japan .MIAPJ0000PUS up 0.5%.
* The dollar .DXY climbed higher from a three-week low hit in the previous session, and traded near multi-month highs versus the yen JPY= , also considered a safe-haven asset. USD/
* The coming days will be crucial for Britain, as it prepares for its departure from the European Union on Oct. 31, with both parties claiming a lot more work would be needed to secure an agreement. Britain said there would be more talks later on Monday, with Prime Minister Boris Johnson hoping a deal will be agreed in time for EU leaders to approve it at a summit in Brussels on Thursday and Friday.
* Markets also look for signs the U.S. Federal Reserve will cut interest rates at its next meeting later in the month.
DATA/EVENTS AHEAD (GMT)
0630 India WPI Inflation YY INWPI=ECI
N/A China Exports YY CNEXP=ECI
N/A China Imports YY CNIMP=ECI
N/A China Trade Balance USD CNTRD=ECI
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Written By: Reuters
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