Investing.com – Gold prices saw little movement in midmorning trade on Monday as worries over global trade seemed to balance out with expectations for a fast-approaching rate hike.
At 10:38AM ET (14:38GMT), for August delivery on the Comex division of the New York Mercantile Exchange edged forward 80 cents, or around 0.1%, to $1,300.10 a troy ounce.
Trade talks between the U.S. and China ended on Sunday without reaching any agreements, casting uncertainty over the trade relations between the two countries.
Meanwhile, the first round of G7 talks saw finance ministers and central bank governors from Canada, France, Italy, Germany, the UK and Japan criticizing U.S. President Donald Trump’s decision to impose tariffs on steel and aluminum.
“Concerns were expressed that the tariffs imposed by the United States on its friends and allies, on the grounds of national security, undermine open trade and confidence in the global economy. Finance Ministers and Central Bank Governors requested that the United States Secretary of the Treasury communicate their unanimous concern and disappointment,” the official statement said.
Global tensions tend to stir up demand for safe-haven assets such as gold.
However, in a session with no major economic data, market participants looked ahead to next week’s Federal Reserve policy decision. Expectations are for the U.S. central bank to hike rates by 25 basis points in the second move so far this year.
Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing investments.
In other metals trading, gained 0.4% at $16.500 a troy ounce by 10:40AM ET (14:40GMT).
rose 0.3% to $999.30 an ounce, while sister metal slipped 0.03% at $906.40.
In base metals, traded up 1.3% to $3.138 a pound.
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Source: Investing.com