Stocks
GLD

PRECIOUS-Gold holds steady on global growth concerns; trade talks in focus

Outdoor LED panel of a stock graph

* U.S. border deal talks collapse, raises govt shutdownfears

* SPDR Gold holdings fell for five straight sessions lastweek (Adds comments, updates prices)

By Sethuraman N R

Spot gold XAU= was marginally lower at $1,312.76 perounce, as of 0254 GMT, while U.S. gold futures GCv1 fell 0.2percent to $1,316.50 per ounce.

"Global growth worries, absence of positive signs inU.S-China trade (talks) and reduction in the euro-zone growthforecasts have laid a strong foundation for gold in the longerrun," said Benjamin Lu, an analyst with Singapore-based PhillipFutures.

"There are a lot of headwinds for gold in the near-term fromthe six-week rally in U.S. equities and a vigorous dollar."

Investors are looking ahead to trade talks between Beijingand Washington this week with a delegation of U.S. officialstravelling to China for the next round of negotiations. U.S.President Donald Trump said last week that he had no plans tomeet with Chinese President Xi Jinping before a March 1 deadlineto achieve a trade deal.

Trump has vowed to increase U.S. tariffs on $200 billionworth of Chinese imports if the two sides cannot reach a deal by12:01 a.m. (0501 GMT) on March 2.

Trade tensions between the world's top two economies haverattled financial markets since last year and also boosted theappeal of the U.S. dollar as a safe-haven.

The dollar index .DXY was hovering near a more thanone-month high touched in the previous session. USD/

A stronger greenback makes dollar-denominated gold moreexpensive for holders of other currencies.

Gold slumped to a more than 1-1/2-year low in mid-August to$1,159.96 on rising interest rates and a strong dollar. But,tumultuous stock markets and expectations of a pause in interestrate hikes this year helped gold touch a nine-month high at$1,326.30 in late January.

Tighter financial conditions since last September makefurther interest rate hikes seem much less necessary than just afew months ago, San Francisco Federal Reserve Bank PresidentMary Daly said on Friday.

While gold is supported by the Fed's dovish policy, priceswill likely remain range-bound until there is clarity on thetrade front and U.S. government shutdown, OANDA analyst EdwardMoya said in a note.

SPDR Gold TrustGLD , the world's largest gold-backedexchange-traded fund, saw outflows for five straight sessionslast week. GOL/ETF

Talks on border security funding collapsed after Democraticand Republican lawmakers clashed over immigrant detention policyas they worked to avert another U.S. government shutdown.

Meanwhile, palladium XPD= fell 0.5 percent to $1,395 anounce.

Spot silver XAG= dropped 0.2 percent to $15.79, whileplatinum XPT= was down 0.5 percent at $794. (Reporting by Nallur Sethuraman in Bengaluru; Editing bySubhranshu Sahu) ((Sethuraman.NR@thomsonreuters.com; (Within U.S.1-651-848-5832, Outside U.S. +91 8067496031); Reuters Messaging:nallur.sethuraman.thomsonreuters.com@reuters.net))


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

GLD

Other Topics

World Markets Politics

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More