China gold purchases top 100 tons amid trade war

China’s Gold Buying Spree Tops 100 Tons During Trade War

China’s Gold Buying Spree Tops 100 Tons During Trade War

Spot gold was down 0.3 % at $1,499.79 per ounce at 1129 GMT.

Gold prices gained on Tuesday, bouncing off a one-week low touched earlier in the session, as uncertainties over U.S. Asian markets too edged lower ahead of the trade talks.

Gold finding support ahead of US - China trade talks.

US gold futures settled mostly unchanged at $1,503.9 an ounce.

The White House confirmed U.S. -China trade talks will stall based on this. "The fact that the dollar is a tad higher is the reason gold is a bit softer", said Saxo Bank commodity strategist Ole Hansen. "All that's interpreting into a range-bound action for gold here". There's $1,465 to the downside and $1,566 on the upside.

"U.S. data has just started to weaken and it will continue to weaken, as we move into 2020 and ultimately that will raise some questions for equity markets and increase volatility there, and we could see further allocations into gold", TD Securities' McKay said.

In a setback for prospects of an orderly Brexit, a British source said that German Chancellor Angela Merkel told Prime Minister Boris Johnson by phone that a deal was "overwhelmingly unlikely" unless Britain left its province of Northern Ireland in Europe's customs union.

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Gold prices advanced on Monday as markets braced for US-China trade negotiations during the week with lesser hopes of a breakthrough, following a report that Chinese officials may not be as willing to bend. They are now the world's biggest purchasers of the metal.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS inched up 0.13% and the USA dollar .DXY against a basket of currencies firmed around 98.98.

Lower interest rates tend to increase investor interest in non-yielding bullion.

Gold prices rose above $1,500 an ounce again on Tuesday as talks on avoiding a disorderly Brexit came perilously close to breaking down, while more gloomy data from the USA bolstered the likelihood of another interest rate cut at the end of the month from the Federal Reserve.

"Silver is getting some benefit from the safe-haven buying and is tracking gold higher", RJO Futures' Streible said.

Elsewhere in haven assets, silver futures rose 1.4% to $17.78 an ounce, their highest in almost two weeks, while platinum futures rose 0.5% to $892.30 an ounce.

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