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PRECIOUS-Gold falls ahead of U.S.-China trade deal on improved risk appetite

Published 01/14/2020, 09:59 AM
Updated 01/14/2020, 03:40 PM
© Reuters. PRECIOUS-Gold falls ahead of U.S.-China trade deal on improved risk appetite
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Jan 14 (Reuters) - Gold fell on Tuesday, as investors opted
for riskier assets after the United States dropped China's
designation as a currency manipulator ahead of an interim deal
between the two sides to ease their trade dispute.

FUNDAMENTALS
* Spot gold XAU= dipped 0.7% to $1,537.67 per ounce by
0126 GMT. U.S. gold futures GCv1 fell 0.9% to $1,537.10.
* Global equities rallied to reach fresh record highs as the
world's two biggest economies prepare to formalise a truce.
MKTS/GLOB
* U.S. Trade Representative Robert Lighthizer said that the
Chinese translation of the deal was almost completed and would
be made public on Wednesday, just prior to a signing ceremony.
* The U.S. Treasury on Monday said China should no longer be
designated a currency manipulator in a long-delayed semi-annual
currency report, reversing its August finding; the decision
coincided with the arrival of a high-level Chinese delegation
for a trade deal signing. * However, a senior U.S. Chamber of Commerce official said,
the deal "stops the bleeding" but is not an end to the trade war
as significant challenges remain. * Meanwhile, the dollar index .DXY held steady against a
basket of rivals, making gold expensive for holders of other
currencies. USD/
* U.S. Federal Reserve officials may broadly agree that
interest rates are unlikely to change soon, but they differed
Monday on how concerned they are about developing financial
risks in assessing when a rate hike might be appropriate.
* Resolute Mining Ltd said on Monday it entered into talks
with private equity fund EMR Capital Management Ltd to sell its
Ravenswood gold mine in Australia for up to A$300 million ($207
million). * Elsewhere, palladium XPD= fell 0.3% to $2,126.26 an
ounce. Silver XAG= was down 1% to $17.79 per ounce, while
platinum XPT= slipped 0.6% to $967.78.

DATA/EVENTS (GMT)
0630 India WPI Inflation YY Dec
1330 US CPI MM, SA Dec
n/a China Exports, Imports YY Dec
n/a China Trade Balance Dec

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