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Gold will continue to shine despite the weak dollar, said gold writer and pro Jim Jimards.
Simon Dawson | Bloomberg | Getty Images
Gold prices stabilized on Wednesday after touching a weeklong floor during the previous session, fueled by concerns over US – China trade relations, in the US. waiting for a reduction in interest rates by the US Federal Reserve.
The spot gold price was stable at $ 1,326.90 from 11:15 GMT, after reaching its lowest level since June 3 at $ 1,319.35 in the previous session.
US gold futures also remained stable at $ 1,330.70 an ounce.
US President Donald Trump on Tuesday defended the use of tariffs as part of his trade strategy, while China promised a firm response if the US insisted that trade tensions intensify. in the context of the ongoing negotiations.
Trump said he was holding a trade deal with China and that he had no interest in going ahead unless Beijing again agreed to four or five "major points", which he did not specify.
He was also interested in the US Federal Reserve, saying that interest rates were "far too high" and that the central bank had "no idea".
Fed policymakers will meet June 18-19 in the context of growing trade tensions, a slowdown in US growth and a sharp reduction in hiring in May, which led markets to expect at least two rate cuts by the end of 2019.
Asian stock markets started cautiously on Wednesday, as the White House adopted a tough trade deal with China as investors prepared for the last batch of Asian giant's economic data.
A decline in two-year Treasury prices has allowed a flattening of the yield curve after a Labor Department report indicates that producer prices rose in May for the second consecutive month, indicating a continued recovery underlying inflationary pressures.
The badets of the SPDR Gold Trust, the largest gold-backed exchange-traded fund in the world, fell 0.03% to 756.18 tonnes on Tuesday from 756.42 tonnes on Monday.
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