Gold Gains Even as US and China Agree to Ease Trade War
Gold gained even after the US and China said they had agreed on a plan to ease trade tensions during talks in London.
Bullion rose to $3,341 an ounce, and is up modestly for the week. US Commerce Secretary Howard Lutnick and China’s trade representative Li Chenggang said the two sides had agreed in principle on a framework to implement the consensus they reached in Geneva.
The detente between the world’s two biggest economies should be negative for haven assets like gold, and the lack of downward movement in bullion suggests investors are waiting for more developments.
The precious metal has surged by more than a quarter this year as President Donald Trump embarked on an aggressive tariff policy and also shook up the geopolitical landscape. Central banks have been enthusiastic buyers of gold as they seek to shift away from US assets.
Gold rose 0.4% to $3,337.58 as of 12:02 p.m. in Singapore, taking its weekly gain to 0.8%. The Bloomberg Dollar Spot Index edged up. Silver increased to near a 13-year-high, while platinum gained to near a four-year peak. Palladium also rose.
Investors are looking ahead to an auction Of US Treasuries on Thursday, with weak demand potentially boosting gold’s haven appeal.
Source : Bloomberg
