Gold futures struggled Monday, bucking the traditional role as a haven market, even as stock futures prices pointed to sharp opening declines with U.S.-China trade talks at an apparent stalemate.
The precious metal had settled higher for a second straight session on Friday, helping prices to post a modest weekly rise, as the Trump administration raised the import taxes on select Chinese goods from 10% to 25% as had been warned ahead of time. The administration claims its Chinese counterparts reneged on commitments made in earlier talks. Stocks on Friday had dropped initially before staging a late-session recovery and now, Wall Street was setting up for a tough start to the week, with Dow Jones Industrial Average futures down over 400 points amid reports of potential countermeasures from China.
Gold for June delivery steadied at $1,287.40 an ounce, after earlier losses. It settled Friday at $1,287.40, a move that marked the fifth gain in six sessions, according to FactSet data. For the week, prices based on the most-active contract climbed 0.5%.
Source : Marketwatch