Gold dips as investors look again to riskier assets
Bengaluru — Gold fell on Tuesday as investors opted for riskier assets after the US dropped China’s designation as a currency manipulator ahead of an interim deal between the two sides to ease their trade dispute.
Spot gold dipped 0.7% to $1,537.67 an ounce by 1.25am GMT. US gold futures fell 0.9% to $1,537.10.
Global equities rallied to reach fresh record highs as the world’s two biggest economies prepare to formalise a truce.
US trade representative Robert Lighthizer said the Chinese translation of the deal was almost completed and would be made public on Wednesday, just before a signing ceremony.
The US treasury on Monday said China should no longer be designated a currency manipulator in a long-delayed semi-annual currency report, reversing its August finding; the decision coincided with the arrival of a high-level Chinese delegation for a trade deal signing.
However, a senior US Chamber of Commerce official said the deal “stops the bleeding” but is not an end to the trade war as challenges remain.
Meanwhile, the dollar index held steady against a basket of rivals, making gold expensive for holders of other currencies.
US Federal Reserve officials may broadly agree that interest rates are unlikely to change soon, but they differed on Monday on how concerned they are about developing financial risks in assessing when a rate hike might be appropriate.
Resolute Mining said on Monday it entered into talks with private equity fund EMR Capital Management to sell its Ravenswood gold mine in Australia for up to A$300m.
Elsewhere, palladium fell 0.3% to $2,126.26 an ounce. Silver was down 1% to $17.79 an ounce, while platinum slipped 0.6% to $967.78.
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