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Gold rises as US says China tariffs to stay until Phase 2 deal completion

China has pledged to buy almost $80 billion of additional manufactured goods from the United States

Reuters 

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edged up on Wednesday, after a top US official said on China would stay until a Phase 2 deal is completed, ahead of the signing of an interim trade deal between the two countries, while palladium scaled a record peak.

Spot rose 0.1% to $1,547.23 per ounce by 0117 GMT; prices had touched their lowest since Jan. 3 at $1,535.63 on Tuesday. US futures rose 0.2% to $1,547.80. Palladium was flat at $2,193.58 an ounce after hitting a record peak of $2,204.29 earlier in the session.

US Treasury Secretary said on Tuesday the United States would keep in place on Chinese goods until the completion of a Phase 2 trade deal. Mnuchin also said, the first phase of a trade agreement will be fully enforceable, including a pledge by China to refrain from manipulating its currency.

China has pledged to buy almost $80 billion of additional manufactured goods from the United States over the next two years as part of a tariff war truce, according to a source, though some US trade experts call it an unrealistic target. Asian stocks trod water as investors awaited signing of the Phase 1 deal, although comments from Mnuchin on somewhat cooled investor sentiment and triggered profit-taking.

US consumer prices rose slightly in December even as households paid more for healthcare, and monthly underlying inflation slowed. The Federal Reserve Bank of New York said on Tuesday it will continue to inject liquidity into the overnight lending for cash until at least mid-February while slightly reducing offerings on longer term loans.

Resolute Mining Ltd said on Wednesday it will sell its Ravenswood Gold mine for up to A$300 million ($207 million) to a consortium led by resource-focused private equity firm EMR Capital. Elsewhere, silver shed 0.1% to $17.78 per ounce, while platinum advanced 0.2% to $985.00

First Published: Wed, January 15 2020. 08:31 IST
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