Gold loses ground as trade tension pushes up metal’s price in China
Sharp rise in price of bullion in yuan since early May and softening Shanghai premiums are probably taking the edge off demand, analyst says
Bengaluru — Gold prices dipped on Monday as China-US trade tensions and uncertainty over a deal weighed on the yuan, making the bullion expensive for buyers in the world’s largest consumer — China. Spot gold was down 0.2% at $1,283.46 an ounce at 0351 GMT (5.51am SA time). US gold futures slipped 0.2% to $1,284.40 an ounce. “Gold price in yuan has risen fairly sharply since early May and Shanghai premiums are softening. That is probably taking the edge off demand and maybe inducing some people to offer [sell] gold,” said Nicholas Frappell, global general manager at ABC Bullion. The trade war between the world’s two leading economies escalated on Friday, with the US hiking tariffs on $200bn worth of Chinese goods after Trump said Beijing “broke the deal” by reneging on earlier commitments. China has vowed to retaliate, without giving details. The US and China appeared at a deadlock over trade negotiations on Sunday as Washington demanded promises of concrete changes to Chinese law an...
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