Bengaluru — Gold prices held steady on Wednesday as a potential close to a months-long China-US trade war lifted risk sentiment, countering expectations that the Fed would pause interest rate increases for this year. Meanwhile, palladium hit a record high at $1,340.50/oz during the session. Spot gold slipped 0.2% to $1,282.97/oz by 4.04am GMT, and US gold futures settled down 0.1% at $1,284.5/oz. “In the short term, there is some optimism that there will be a trade truce, which will take away a shadow from market confidence,” said Benjamin Lu Jiaxuan, a commodities analyst at Phillip Futures. However, gold is seeing some headwind because of a gradual recovery in risk assets, as well as investors pricing in the US Federal Reserve’s dovish signals, he added. Asian shares climbed to a three-and-a-half-week high in early trade on optimism that Washington and Beijing could strike a trade deal to avoid an all-out confrontation that would severely disrupt the global economy. The rally in r...
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