Singapore: Gold’s rangebound performance on Wednesday was driven chiefly by some improvement in risk appetite, after White House officials said Trump and Xi will talk sometime this week. The talks could help renew U.S.-China trade negotiations, which Washington admitted had stalled in recent weeks. The U.S. and China had agreed in May to slash their respective trade tariffs, albeit temporarily.
According to Azeri-Press News Agency, while the trade truce had sapped some haven demand for gold, the yellow metal still remained relatively well-bid, especially amid growing uncertainty over a permanent trade deal. The yellow metal saw renewed bids this week after Ukraine launched a series of devastating strikes against Russia, most recently an underwater explosion targeting a bridge linking Russia to Crimea. Gold is trading up nearly 2% this week.
The dollar saw some strength this week amid speculation over U.S.-China trade talks, while also receiving bids ahead of key nonfarm payrolls data due on Friday. The greenback was also buoyed by several Federal Reserve officials reiterating that interest rates will remain unchanged in the near-term.
Resilience in the dollar pressured broader metal prices. Platinum futures rose 0.4% to $1,079.40/oz, while silver futures steadied at $34.618/oz on Wednesday. Among industrial metals, copper prices took some support from hopes of easing economic pressure on top importer China, especially if dialogue between Washington and Beijing proceeds. Benchmark copper futures on the London Metal Exchange rose 0.2% to $9,643.10 a ton, while U.S. copper futures rose 0.2% to $4.8750 a pound.