Gold Dips as Dollar Holds Onto Gains; U.S.-China Spat in Focus
Gold prices fell on Monday as the dollar held onto gains made after better-than-expected U.S. payrolls data, while investors kept a close eye on Sino-U.S. relations ahead of scheduled trade talks.
Spot gold was down 0.3% at $2,029.19 per ounce by 0701 GMT. U.S. gold futures rose 0.6% to $2,039.60. Japanese and Singapore markets were closed for public holidays.
Gold hit a record high of $2,072.50 on Friday before retreating nearly 2% as the dollar bounced on data showing U.S. nonfarm payrolls increased by 1.763 million jobs in July.
The dollar has, on occasion, been the favored safe haven amid flare-ups in tensions between Washington and Beijing.
Last week, U.S. President Donald Trump took steps to ban two popular Chinese apps.
Speculators reduced their bullish positions in COMEX gold and silver contracts in the week to Aug. 4.
But gold’s appeal as a safe haven has been underpinned by the uncertainty driven by the COVID-19 pandemic, with resultant widespread global stimulus also fuelling concerns of inflation.
In the United States, which has marked a grim milestone of 5 million cases, Trump signed executive orders on Saturday partly restoring enhanced unemployment payments to millions of Americans.
Silver gained 0.2% to $28.33 per ounce, platinum rose 1% to $970.86 and palladium was steady at $2,177.08.
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.