Gold drops as the dollar advances, while investors weigh the outlook for haven demand amid U.S.-China trade dispute, with financial markets awaiting details of Beijing’s response to the latest tariff hike by Washington.
While the world’s two largest economies have worked hard to project calm since the end of discussions on Friday, emphasizing that they plan to continue negotiations, that masks what people close to the talks say has been a bigger erosion of trust that makes the prospect of any near-term deal remote.
The latest breakdown has prompted an escalation in the standoff that looks increasingly like the International Monetary Fund and others’ worst-case scenario for a global economy already forecast to grow this year at its slowest rate since the immediate aftermath of the 2008 financial crisis.
Spot gold -0.2% to $1,283.11/oz at 7:40am in London; +0.5% last week.
Source : Bloomberg