Gold hits one-week low on stronger dollar
Bullion will face pressure if US-China trade talks at the G20 summit go badly this week, and if the Fed hikes rates in December as it’s expected to do
Bengaluru — Gold hit a one-week low on Tuesday, following a rally in the dollar after US President Donald Trump warned of higher tariffs on all imports from China ahead of a meeting with his counterpart Xi Jinping. Spot gold inched 0.1% higher to $1,223.75 an ounce at 11.12am GMT, after touching its lowest since November 19 at $1,219.04. US gold futures were up 0.1% at $1,223.70 an ounce. Trump is expected to meet Xi to discuss the trade dispute at the Group of 20 (G20) summit in Argentina this week. “If they agree on making some sort of progress on the trade side, that could be quite positive for gold as it would likely weigh on the dollar, which has been the safe-haven currency in this trade debate,” Julius Baer analyst Carsten Menke said. “But any kind of escalation would likely be negative for gold.” Trump said on Monday he was “highly unlikely” to accept China’s request to hold off raising tariffs, which is due to take effect on January 1. That supported the dollar index agains...
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