Gold prices stabilized after easing duties between the US and China

The spot price of gold and futures were stable as of the morning of June 4.

UNN reports with reference to Investing and Reuters.

Details

Gold prices moved in a narrow range in Asian trading on Wednesday, as risk appetite increased amid speculation of a possible conversation between US President Donald Trump and Chinese President Xi Jinping. Another factor is strong US employment data for April offset persistent uncertainty over trade relations between the US and China.

Spot gold was stable at $3,351.49 an ounce on the morning of June 4. US gold futures also held at $3,375.

A trade truce has somewhat reduced demand for gold as a safe haven, but the yellow metal remains relatively well supported, especially amid growing uncertainty about a permanent trade deal. Therefore, precious metal prices remained high, the publications summarise.

Comment

"We are seeing potential buyers returning to the market, but... the situation is still uncertain, especially around trade relations between China and the US, as well as between the EU and the US," said Kelvin Wong, senior market analyst for Asia-Pacific at OANDA.

Recall

UNN reported that gold prices are falling due to geopolitical tensions in Europe and the Middle East. The spot price fell by 0.6%, August futures by 0.4%.