Gold prices headed higher early Tuesday, as doubts about a near-term resolution between the world’s largest economies hurt demand for assets perceived as risky and fed appetite for haven assets, including bullion.
December gold on Comex rose $6.10, or 0.4%, at $1,510.50 an ounce, after shedding 0.6% on Monday. December silver added 7 cents, or 0.4%, to $17.610 an ounce, after declining 0.5% in the previous session.
So-called safe-haven assets were drawing some bids after Washington expanded its list of blacklisted Chinese firms to 28 entities ahead of U.S.-China trade talks this week, increasing doubts that a comprehensive Sino-American trade agreement can be sketched out as delegates meet this week.
Vice Premier Liu He is set to visit Washington on Oct. 10-11 ahead of an increase in tariffs on some $250 billion worth of Chinese imports to 30% from 25%. Both sides have tempered hopes that negotiations will be fruitful, with news reports suggesting Chinese officials want to take certain issues like state subsidies off the table.
Source : Market Watch