Gold Steady as U.S.-China Trade Talks Dampen Demand for Safe Havens
Gold steadied as signs the U.S. and China were willing to make concessions on a second day of trade talks in London eased demand for safe havens.
Bullion was little changed near $3,330 an ounce. The U.S. indicated it would ease some curbs on technology exports, in return for assurances that China would ease limits on rare earth shipments.
Uncertainty over global trade tensions has roiled markets this year, boosting bullion’s appeal as a store of value in troubled times and driving a gain of about 27% this year. While the rally has cooled in recent weeks, lingering concerns over the economic impact of U.S. tariffs have kept the precious metal close to a record hit in April.
Platinum, meanwhile, retreated from a four-year high after surging more than 15% over the previous six sessions on signs of severe market tightness. The positive sentiment may be partly due to rising gold prices, said Francisco Blanch, head of commodities and derivatives research at Bank of America. The bank expects gold to eventually reach $4,000, but that may not happen until 2026 because “we need to see a real shock for prices to get out of control,” Blanch said in an interview on Bloomberg TV on Monday.
Gold was trading at $3,329.91 an ounce at 11:07 a.m. in London. The Bloomberg Dollar Spot Index edged up 0.1%. Silver and palladium fell. Investors are focused on a long-term Treasury auction on Thursday, an event that has drawn unusual attention amid growing global aversion to U.S. debt. A weak yield could boost demand for gold as investors seek a safe haven.
Source: Bloomberg
