Investing.com - The trade talk swings continue, yanking gold along for yet another day — this time higher.
Both bullion and gold futures climbed from Monday’s two-week lows as markets took in their stride a statement by China’s commerce ministry that Vice Premier Liu He held talks over the phone — again — with U.S. Trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin and discussed issues related to the phase one agreement.
Each time the three officials spoke over the past month, markets have gotten their hopes up that the phase one was a done deal, only to realize later it wasn’t.
Gold’s role as a safe-haven hedge to the trade war came through on Tuesday after the latest round of talks, though the gains were marginal.
Gold futures for December delivery on New York’s COMEX settled up $3.40, or 0.2%, at $1,460.30. The contract plumbed $1,460.70 in the previous session, a bottom since Nov. 8.
Spot gold, which tracks live trades in bullion, was up $6.72, or 0.5%, at $1,461.60 by 2:55 PM ET (19:55 GMT).
“The main influencer for gold is still safe-haven sentiment tied to trade talks,” said Eric Scoles, precious metals strategist at RJO Futures in Chicago.
“The trade talks have been somewhat optimistic lately, but overall quiet this week, and the market is likely to remain somewhat neutral with it being a holiday week in the U.S.,” Scoles said. “As of right now, I think gold needs some big headlines to set this market moving one way or the other.”Original Article