Gold prices hold steady amid lingering doubts over U.S.-China trade deal

Gold prices hold steady amid lingering doubts over U.S.-China trade deal

19 Nov 2019 11:24 AM

Gold held steady on Tuesday after hitting its highest in over one-and-a-half weeks, propped up by doubts about a trade deal between the United States and China.

Spot gold was little changed at $1,470 per ounce. It had hit the highest level since Nov.7 at $1,475.40. U.S. gold futures fell 0.1% to $1,470.50 per ounce.

Asian share markets were mixed as another day awaiting clearer news on the progress of the trade negotiations left investors bereft of trading motivation. Overnight, CNBC had reported the mood in Beijing was pessimistic about the prospects of sealing an agreement.

Market participants also kept a close eye on the unrest in Hong Kong, with dozens of protesters in the financial hub staging a dramatic escape from a university campus sealed off by police on Monday. Gold is considered a safe store of value during economic or political uncertainties.

The focus now shifts to minutes from the U.S. Federal Reserve's last policy meeting this year, due on Wednesday. The Fed cut rates three times this year — in part to offset what it views as damage done by the tariff war. But after their meeting in October, policymakers signalled they would lower rates no further unless the economy took a serious turn for the worse.

Elsewhere, silver inched up 0.06 % to $17.03 per ounce, while palladium fell 0.2% to $1,733.60 per ounce.  Platinum rose 0.2% to $895.84 per ounce.

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