Latest News

UK News

Click Here to read UK News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
UK News
PRECIOUS-Gold jumps over 1% as Trump says trade deal could extend to 2020
Published at 03/12/2019 at 19:39

(Updates prices)

* Breach of $1,485/oz level could push gold above $1,500 - analyst

* Silver hits more than one-week high

* GRAPHIC-2019 asset returns:

By Karthika Suresh Namboothiri

Dec 3 (Reuters) - Gold jumped more than 1% on Tuesday on fading optimism surrounding a U.S.-China trade deal after U.S. President Donald Trump said talks could extend until after the presidential elections in November 2020.

Spot gold gained 1.1% to $1,478.38 per ounce as of 02:32 p.m. ET (1932 GMT), after touching $1,481.80, its highest since Nov. 7.

U.S. gold futures settled 1% higher at $1,484.40.

"Stock markets are lower and there is flight to safety in gold right now. Gold prices are up with what Trump said about China-U.S. tariffs," said Bob Haberkorn, senior market strategist at RJO Futures.

"All signs point towards a move back above $1,485 on the February contract, which could be enough to push it above $1,500."

Trump said a trade deal with China might be delayed until after the November 2020 elections, dashing hopes that an agreement could be reached before another round of tariff hikes take effect on Dec. 15.

Gold prices have gained nearly 15% this year owing to the protracted tariff dispute, which has fanned recessionary fears and prompted central banks around the world to ease interest rates.

Risk appetite was also hit on Monday after Trump tweeted he would slap tariffs on Brazil and Argentina for what he saw as both countries' "massive devaluation of their currencies."

Further dampening risk sentiment, Washington also threatened duties on French goods because of a digital services tax imposed by France that could harm U.S. tech companies, to which France and the European Union said they are ready to retaliate, if those threats were to materialize.

Most other precious metals latched on to gold's rally, with silver gaining 1.6% to $17.17 per ounce, its highest since Nov 22. Platinum was up 1.4% at $910.

"If gold and silver heat up over the next year (because of an extended trade war), platinum will naturally get pulled in. Palladium, on the other hand, is a little too high on a lot of supply concerns," Haberkorn said.

Palladium edged 0.1% higher to $1,854.03, after notching a record high of $1,861.71 in the previous session.

"How high palladium can go depends on how much the car makers are willing to pay for steady supply of the metal," Saxo Bank analyst Ole Hansen said.

"However, these multiple record highs may lead to a correction soon, and we may see palladium hitting $1,800 before it gets a chance to hit the $1,900 range."

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Palladium hits fresh record

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

(Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Jonathan Oatis and Andrea Ricci)

((karthikasuresh.namboothiri@thomsonreuters.com; +91 80 6749 0997 (If within U.S. call 651-848-5832); Reuters Messaging: karthikasuresh.namboothiri.thomsonreuters.com@reuters.net))