Latest News

Irish News

Click Here to read Irish News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
PRECIOUS-Gold firms as U.S.-China trade dispute worsens ahead of talks
Published at 09/10/2019 at 02:02

Oct 9 (Reuters) - Gold prices firmed on Wednesday as tensions between the United States and China ratcheted up ahead of crucial trade talks later this week, sapping risk appetite, while concerns over Brexit added to bullion's safe haven appeal.

FUNDAMENTALS

* Spot gold rose 0.1% to $1,505.95 per ounce as of 0027 GMT. U.S. gold futures gained 0.5% to $1,511.40.

* Asian stocks fell the most in a week, with MSCI's broadest index of Asia-Pacific shares outside Japan down 0.3%.

* Ahead of trade talks later this week, the U.S. government widened its trade blacklist to include some of China's top artificial intelligence startups, punishing Beijing for its treatment of Muslim minorities and ratcheting up tensions.

* U.S. President Donald Trump also said he hoped Beijing would find a humane and peaceful resolution to political protests in Hong Kong, adding that the situation had the potential to hurt their trade discussions.

* The talks are getting underway ahead of a scheduled increase in U.S. tariffs on $250 billion worth of Chinese goods, to 30% from 25% on Oct. 15.

* The U.S. Treasury yield curve steepened, driven by a falling two-year yield after Federal Reserve Chairman Jerome Powell flagged openness to further rate cuts and said the Fed would expand its balance sheet to ensure money markets function smoothly.

* Uncertainties on the U.S. political outlook supported bullion, after the White House said on Tuesday it would refuse to cooperate with an "illegitimate, unconstitutional" congressional impeachment inquiry, setting Trump on a collision course with the Democratic-led House of Representatives.

* Outside of the United States, the European Union accused Britain of playing a "stupid blame game" over Brexit on Tuesday after a Downing Street source said a deal was essentially impossible because German Chancellor Angela Merkel had made unacceptable demands.

DATA/EVENTS AHEAD (GMT)

1200 Brazil IPCA Inflation Index MM Sept

1800 US Federal Open Market Committee releases

minutes from its Sept. 17-18 policy meeting

(Reporting by Karthika Suresh Namboothiri in Bengaluru; editing by Richard Pullin)

((karthikasuresh.namboothiri@thomsonreuters.com; +91 80 6749 0997 (If within U.S. call 651-848-5832); Reuters Messaging: karthikasuresh.namboothiri.thomsonreuters.com@reuters.net))