Gold hit by uncertainty over U.S.-China trade deal, firmer dollar

Wednesday,   13-Nov-2019   09:21 AM (IST)

Gold prices were flat on Wednesday as investors stayed cautious after a much-awaited speech by U.S. President Donald Trump gave no details on the signing of a trade deal with China, while a firmer dollar dented demand for the safe-haven asset. Spot gold was flat at $1,457.91 per ounce, as of 0116 GMT, while U.S. gold futures  were up 0.3% at $1,458 per ounce. The U.S. dollar clung to most of its recent gains on Wednesday after U.S. President Donald Trump said a trade deal with China was "close". The dollar index , which is currently hovering near a month high, makes gold expensive for holders of other currencies. Asian stocks and Wall Street futures fell on Wednesday on growing worries U.S.-China trade talks are stalling after Trump failed to deliver any new information. The months-long Sino-U.S. trade war has put financial markets in turmoil and sparked fears of a global economic slowdown, pushing the precious metal more than 13% higher this year. The political unrest in Hong Kong has also supported gold, which is considered an alternative investment during times of geopolitical and financial uncertainty.  Police battled pro-democracy protesters at several university campuses in sometimes savage clashes in the Asian financial hub, as parts of the city were paralysed including Hong Kong's Central financial district that was tear-gassed for a second day running. Later in the day, U.S. Federal Reserve Chairman Jerome Powell is scheduled to testify on economic outlook before the congressional Joint Economic Committee.  SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.45 percent to 897.09 tonnes on Tuesday from 901.19 tonnes on Monday.