Gold falls as trade war dents Chinese demand
The yuan is set for its worst daily fall in nine months, hurt by trade concerns, making gold expensive for buyers in China
Bengaluru — Gold prices fell on Monday as an escalating trade conflict between Washington and Beijing weighed on the yuan, denting demand in the world's biggest consumer of the metal, China. Spot gold was down 0.2% at $1,283.63 an ounce at 10.31am GMT. US gold futures slipped 0.3% to $1,284.20. "Gold is trading a touch softer even though some of the outside market should be providing support. Bond yields are lower, stocks are lower and the dollar is also slightly down -- all gold-friendly developments," Saxo Bank commodity strategist Ole Hansen. "We're seeing the negative impact from the yuan." The yuan was set for its worst daily fall in nine months, hurt by trade concerns, making gold expensive for buyers in China. Trade tension has plagued investors in wider markets, with Washington increasing tariffs on $200bn of Chinese goods on Friday, raising the chances of a retaliation from Beijing. The two biggest economies appeared to be deadlocked on Sunday as Washington demanded promis...
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