Gold is taking a break from its trade-war fueled rally, reversing earlier gains to trade little changed after the People’s Bank of China took steps to slow the yuan’s decline.
Bullion hit a six-year high earlier in the day, after the Trump administration labeled China a currency manipulator, underscoring the deteriorating relationship between the two nations. The gain was rolled back after the PBOCset the daily fixing at 6.9683 per dollar, stronger than expected.
Spot gold was 0.1% higher at $1,464.73 an ounce at 12:09 p.m. in London, after earlier advancing as much as 0.8% to $1,474.93 an ounce, the highest since May 2013. The Bloomberg Dollar Spot Index is heading for its four consecutive daily decline.
In China, bullion of 99.99% purity advanced as much as 1.6% to 337.40 yuan a gram on the Shanghai Gold Exchange, the highest level since 2013, before slipping back to 333.07. In other precious metals, spot silver and platinum both declined while palladium rose.