Gold prices pared early gains and steadied amid a firm U.S. dollar ahead of European market hours. Spot gold XAUUSD was steady at $1,212.05 an ounce, down 0.08% after hitting as high as $1217.85. U.S. gold futures GCcv1 were down 0.23% at $1,220.30 an ounce, Gold is still very much being influenced by how the dollar is moving.
The uptick in gold prices was from the market pricing in how the U.S.-China trade war issues actually play out. Gold prices had rebounded on Friday from a 17-month low of $1,204 per ounce as the dollar slipped after data showed U.S. job growth slowed in July. The dollar had also weakened against the yuan on Friday after the Chinese central bank sought to stabilize its currency. Greenback, however, regained footing on Monday and strengthened against major peers.
Chinese Media Blames Trade Tariff As Personal Attack
China proposed retaliatory tariffs on $60 billion worth of U.S. goods on Friday, further escalating a bitter trade conflict after the Trump administration sought to ratchet up pressure for trade concessions by proposing a higher 25-percent tariff on $200 billion worth of Chinese imports. Monday, Chinese state media lambasted U.S. President Donald Trump’s trade policies in an unusually personal attack and sought to reassure investors worries about China’s economy as growth concerns rattled its financial markets. The intensifying trade spat has been one of the main reasons for a decline in demand for precious metals as the trade issues have also been playing off into a more expensive dollar. The expensive dollar is also affecting the price action of silver. Spot silver XAGUSD is trading at $15.369 down 0.29% an ounce.
Crude oil prices edged lower Friday after China said it will not follow the US’ lead in cutting imports from Iran. The re-imposition of sanctions following the Trump administration’s decision to scrap an Obama-era nuclear disarmament accord begins today. However Crude oil price rose up in early trading hours on Monday as participants raised bets. WTIUSD is trading at $69.49/b up 0.09% on the day as Saudi crude production registered a surprising dip in July and as American shale drilling appeared to plateau. The global crude market is expected to continue moving on slow but steady uptrend movement on Monday.