Gold declines as expectation of stimulus measures to prop up Chinese growth buoys stocks even as investors gauge news flow from the U.S.-China trade war and rising tensions between Washington and Iran.
China’s industrial output, retail sales and investment all slowed more than economists forecast in April, sparking hopes that the government will need to boost stimulus to cushion the blow from the escalating trade war.
President Donald Trump called on the Federal Reserve to “match” what he said China would do to offset economic hardship caused by tariffs. That’s even as the White House works on tariffs for the remaining $300 billion of Chinese imports and Trump prepares to meet his counterpart Xi Jinping at next month’s G-20 summit. The U.S. leader said he had a feeling further trade talks with China will be “very successful.”
Spot gold -0.2% at $1,294.57/oz at 8:23am in London, after sliding 0.2% Tuesday.
Source : Bloomberg