By Barani Krishnan
Investing.com – Gold seems to depend, at least for now, on one factor: China.
Prices of the yellow metal remained in negative territory for a seventh straight session on Tuesday. The dip, however, was modest as buying emerged at the lower level on news that China had targeted slower growth for 2019 amid its unresolved trade war with the United States.
for April delivery settled down $2.80 at $1,284.70 per ounce on the Comex division of the New York Mercantile Exchange. Since Friday, Comex gold has traded below $1,300, a perch it had held since Jan. 20.
, reflective of trades in physical bullion, slid by 98 cents, or 0.1%, to $1,285.71 per ounce by 2:22 PM ET (19:22 GMT).
“Gold is finding a minor bid after sellers exhausted themselves the last few days on discussions over the global economic slowdown, particularly on the China front,” said George Gero, precious metals analyst at RBC Wealth Management in New York.
“The dollar’s highs have been a headwind to gold, too,” Gero added.
The , which measures the greenback against a basket of six currencies, was up 0.2% at 96.75. It hit a more-than-two-week high of 96.95 earlier on Tuesday as the greenback resumed control of its narrative as the best hedge to the U.S.-China conflict. While some have counted on gold as a safe haven to the trade fight, the dollar has held the higher ground here.
Stocks on Wall Street, another contrarian trade to gold, initially fell — but were flat by afternoon — after China said it was targeting a gross domestic product growth of 6% to 6.5% in 2019, down from the 6.6% reported last year. Beijing has also cut taxes to stimulate growth among manufacturers and increase infrastructure investment.
The news came after stocks were mixed Monday despite reports suggesting a trade deal between the U.S. and China is in sight.
The lack of detail on negotiations between Chinese trade officials and the Trump administration also triggered worries there may not be proper closure to tensions between the world’s two largest economies. Trump has withheld raising further tariffs planned on Chinese goods from March 1 while asking Beijing to lift duties on U.S. agricultural products — a request that has not yet been approved.
Palladium also continued its decline on Tuesday, although its wide premium to gold retained its standing as the world’s costliest metal.
The was down $17.15, or 1.1%, at $1,515.50 per ounce. On Wednesday, spot palladium hit a record high of $1,569.40 as investors piled into the auto-catalyst metal due to its shrinking supplies.
Trades in other Comex metals as of 2:22 PM ET (19:22 GMT):
down $11.75, or 0.8%, at $1,473.35 per ounce.
down 60 cents, or 0.01%, at $839.50 per ounce.
up 3 cents, or 0.2%, at $15.14 per ounce.
up 3 cents, or 1%, at $2.95 per pound.
Source: Investing.com
