(Reuters) – Gold prices were trading in a narrow range on Tuesday as investors stayed on the sidelines, even as U.S. President Donald Trump’s move to slap tariffs on Brazil and Argentina stoked fresh global trade tensions.
Spot gold slipped 0.1% to $1,460.92 per ounce by 0506 GMT. U.S. gold futures fell 0.2% to $1,466.60.
Trump on Monday announced tariffs on U.S. steel and aluminium imports from Brazil and Argentina “effective immediately”, opening new fronts in his trade war.
“The only reason prices have not risen is because the investment demand for gold is not there,” said Jigar Trivedi, a commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers.
“In SPDR gold exchange-traded funds (ETF), flows have reduced, investor demand has faltered and that is why gold prices have not reacted to the uncertainties to the trade matters,” he said.
Holdings of the world’s largest gold-backed ETF, SPDR Gold Trust, fell 0.7% to 889.16 tonnes on Monday, their lowest since Sept. 19.
Speculators also cut their bullish positions in COMEX gold in the week to Nov. 26, data showed on Monday.
“People are expecting U.S.-China trade war to de-escalate, plus the U.S. Federal Reserve has signalled that there will be no further rate cuts unless there is a U-turn in the economy, so sentiment will be bearish (in gold),” Trivedi said.
Gold has risen more than 13% so far this year, mainly due to the 17-month-old trade dispute.
Trump on Monday said U.S. legislation backing protesters in Hong Kong did not make trade negotiations with China easier, but added he believes Beijing still wants a deal.
“The metal continues to hold range bound heading into year-end, seemingly well supported around $1,450, however lacking any meaningful demand to break top-side resistant through $1,465 – $1,470 and $1,480 the key level above this,” analysts at MKS PAMP said in a note.
Elsewhere, palladium was down 0.1% at $1,851.09 per ounce, after scaling an all-time peak in the previous session at $1,861.71.
Silver was flat at $16.90, while platinum was unchanged at $897.65.
Read more news on oursite:
UK news UK companies news Sterling pound news EU news EU companies news Euro news US news US companies news US Dollar news Japanese Yen news Chinese Yuan news Trading EU Shares Commodities news Crytocurrency news Major Currency Pairs Update fonecable中文版(简) fonecable中文版(繁) fonecable日文版 and more…
- Dollar Up Over Dimming Vaccine Hopes And Simmering U.S.-China Tensions
- NEWS: Head of South Korea’s central bank says to buy government bonds if volatility rises July 16, 2020 at 03:36AM
- NEWS: China President Xi will provide supportive environment for business July 16, 2020 at 03:14AM
- NEWS: Australian PM Morrison says expects July jobs data to be worse due to reimposed lockdown July 16, 2020 at 03:11AM
- NEWS: China Industrial Production +4.8% y/y (expected 4.8%) Retail Sales -1.8% y/y (expected 0.5%) July 16, 2020 at 03:00AM
Top Posts & Pages
- NEWS: BOJ as expected, no change to monetary policy July 15, 2020 at 03:57AM
- NEWS: WTI crude oil futures settle at $41.20 July 15, 2020 at 07:40PM
- NEWS: Pres. Trump: Has completed overall of infrastructure approval process July 15, 2020 at 08:48PM
- US Dollar Forecast: Testing Major Channel Support - Levels for DXY Index
- NEWS: USDCAD trades near the low of the channel trend line July 15, 2020 at 02:58PM
- NEWS: Be aware: USDCAD gets closer to key 200 day MA July 15, 2020 at 05:37PM
- NEWS: Texas coronavirus cases hit a new record high again, +10,791 July 15, 2020 at 10:06PM
- NEWS: USDCAD breaks below lower channel trend line July 15, 2020 at 03:59PM
- NEWS: Here are 3 positives and 3 risks for the US stock market investors should put more focus on July 15, 2020 at 04:35AM
- NEWS: Dollar eases further as risk rally extends on vaccine news July 15, 2020 at 12:15PM
Read more – fonecable: Gold prices tread water despite Trump Latam tariffs … RTRS