Breaking News
0

PRECIOUS-Gold prices fall as dollar gains vs yuan in escalating trade war

CommoditiesJul 11, 2018 09:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. PRECIOUS-Gold prices fall as dollar gains vs yuan in escalating trade war

* U.S. to impose 10 pct tariffs on $200 bln of Chinese goods

* Spot gold may break support at $1,247/oz - technicals

* SPDR holdings fell 0.22 pct on Tuesday

* Palladium falls to two-week low (Adds comment and updates prices)

By Karen Rodrigues

BENGALURU, July 11 (Reuters) - Gold prices fell on Wednesday as the dollar firmed against the yuan after the United States threatened to impose additional tariffs on Chinese goods, escalating trade tensions between the world's two largest economies.

The Trump administration raised the stakes in its trade dispute with China, threatening 10 percent tariffs on a list of $200 billion worth of Chinese imports. news comes after Washington imposed 25 percent tariffs on $34 billion of Chinese imports last week. Beijing responded immediately with matching tariffs on the same value of U.S. goods exported to China. gold XAU= was 0.3 percent lower at $1,251.43 an ounce at 0710 GMT. In the previous session, the bullion hit a one-week low at $1,246.81 an ounce.

U.S. gold futures GCcv1 for August delivery were 0.3 percent lower at $1,252.30 an ounce.

The offshore Chinese yuan fell as low as 6.6918 per dollar CNH=D4 , down more than 0.5 percent from late U.S. levels and edging near its 11-month low of 6.7344 touched on July 3. USD/

A firmer greenback makes bullion expensive for holders of other currencies as the commodity is priced in dollars.

It's risk-off and that put the dollar on the front foot and triggered commodities lower, a Hong Kong-based trader said.

"With these tariffs, gold has not reacted well as a safe-haven in the past so the metal is under pressure," the trader added.

Spot gold may break a support at $1,247 per ounce and fall more towards the next support at $1,237 as it has completed a bounce from the July 3 low of $1,237.32, Reuters technicals analyst Wang Tao said. TECH/C

"When trade war risk escalates investors run for cover... I always have gold as a hedge but it's been more challenging to have this view when the U.S. dollar is attracting haven flows," said Stephen Innes, APAC trading head at OANDA.

Meanwhile, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares GLD , fell 0.22 percent to 799.02 tonnes on Tuesday. GOL/ETF

Among other precious metals, silver XAG= shed 0.8 percent to $15.92 an ounce and platinum XPT= was 0.5 percent lower at $837.70 per ounce. Earlier in the session, both the metals fell to their lowest since July 3.

Palladium XPD= was down 0.4 percent at $938.03 per ounce, after earlier falling to a two-week low at $934.35.

PRECIOUS-Gold prices fall as dollar gains vs yuan in escalating trade war
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email