Gold Silver Reports (GSR) – Gold steadied on Wednesday afterRetreating from a 1-month peak in the previous session as Washington and Beijing decided to further their discussionsontrade, soothing investor concerns around a fullblown trade war.
U.S. President Donald Trump on Tuesday called the trade war with China “a little squabble” and insisted talks between the world’s two largest economies had not collapsed, as investors remained on guard for a further escalation of tit-for-tat tariffs.
U.S. gold futures were also steady at $1,298 an ounce.
Spot gold was steady at $1,297.45 per ounce at 0136 GMT.
Meanwhile on Tuesday, the Chinese government also confirmed that the two countries have agreed to keep talking about their trade dispute.
The dollar was also firm early in Asia on Wednesday, while the Australian dollar brushed a fresh more than four-month low as traders eyed Chinese and European data for evidence that the worst may be over for the global economy.
In the previous session, both U.S. and European stocks were lifted by Trump downplaying his trade war with China, a day after a spike in tensions between the world’s two largest economies rattled financial markets.
However, restraining further downside for gold, Asian shares still struggled near a 3-1/2-month low on Wednesday on lingering concerns over the economic impact of a U.S.-China trade war.
Global investors’ equity allocations fell 6 percentage points in May and over a third of fund managers have taken out protection against sharp stock market falls in coming months, Bank of America Merrill Lynch’s latest monthly survey found on Tuesday.
Petra Diamonds said on Tuesday it sold a 425-carat diamond, recovered at its flagship Cullinan mine in South Africa in March, to Belgium-based Stargems Group for $15 million, potentially helping it turn free cash flow positive this year.