Gold steadies as trade optimism dims on Huawei sanctions

Gold steadies as trade optimism dims on Huawei sanctions

16 May 2019 11:19 AM
 

Gold steadied on Thursday, consolidating in a tight range below the key $1,300 pivot, as Washington slapped sanctions on Chinese telecoms giant Huawei, souring optimism for a thaw in U.S-China trade tensions.

Spot gold was unchanged at $1,296.30 per ounce, moving in a narrow range of about $3.

U.S. gold futures edged 0.1% lower to $1,296.80 an ounce.

There are still a lot of underlying tensions (surrounding U.S.-China trade relations) so that might be supportive for gold.

While gold's gains may be limited by expectations of talks between the U.S. and China, the metal would still hover in the $1,280-$1,310 range.

The news on the sanctions dented hopes of a lull in the escalating trade spat, which has roiled wider markets and brought back to the fore risks of a slowdown in global growth, exacerbated by recent weak economic data from China.

The news on the sanctions dented hopes of a lull in the escalating trade spat, which has roiled wider markets and brought back to the fore risks of a slowdown in global growth, exacerbated by recent weak economic data from China.

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