· Gold prices came under pressure on Wednesday as news that the Trump administration has plans to propose higher tariffs on Chinese goods stoked demand for the U.S. dollar.
· The dollar edged up on the yuan and growth-leveraged currencies after a source said on Tuesday that the White House was about to propose a 25 percent tariff on $200 billion of imported Chinese goods after initially setting them at 10 percent, sparking a new round of trade hostilities in the U.S.-China tariff spat.
· Spot gold was down 0.1 pct at $1,221.78 an ounce at 0353 GMT, after gaining slightly in the previous session. U.S. gold futures were about 0.2 percent lower at $1,221.90 an ounce.
· The slight uptick in gold prices last night came from safe-haven demand, but the weakness this morning is really predicated on the dollar, OCBC analyst Barnabas Gan said. “The trade tensions are also fueling safe-haven flows into the dollar. The greenback still appears to be the preferred safe haven rather than gold,” Gan said.
· Asian stocks rose in early trade on a report that the United States and China were seeking to resume talks to defuse trade tariff issues, before paring gains.
· Meanwhile, investors waited for the outcome of a two-day U.S. Federal Reserve monetary policy meeting for outlook on interest rates.
· The Fed is expected to keep rates unchanged, but solid economic growth combined with rising inflation are likely to keep it on track for another two hikes this year even as President Donald Trump has ramped up criticism of its push to raise rates.
· “Tonight’s FOMC will likely be watched for cues and comments from Fed officials on future rate hikes and monetary policy stance for the rest of the year,” Gan said.
· Spot gold looks neutral in a range of $1,214-$1,226 per ounce, Reuters technicals analyst Wang Tao said.
· In other precious metals, silver fell 0.2 percent to $15.48 an ounce. Platinum and palladium were both 0.1 percent higher at $835.50 an ounce and $930.60 an ounce, respectively.
· Gold prices continue to oscillate in a choppy range above the 38.2% Fibonacci expansionat 1217.29. Breaking below this barrier on a daily closing basis targets the 50% levelat 1202.28. Alternatively, a bounce back above support-turned-resistance at 1236.66 paves the way for another test of the 1260.80-66.44 area.
Reference: Reuter
Thai
Eng