Gold bars. Photographer: Alessia Pierdomenico\/Bloomberg <\/p>\n
(Bloomberg) — Gold wavered around $4,000 an ounce as traders weighed a US-China trade truce that failed to quash concerns about long-term competition between the world\u2019s two largest economies.<\/p>\n
Spot gold fell as much as 0.8% on Friday, after climbing 2.4% in the previous session to halt a four-day losing streak. Chinese leader Xi Jinping called for stable supply chains in his first public remarks after meeting with US President Donald Trump.<\/p>\n
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Talks between the two leaders appeared to resolve \u2013 for now \u2013 months of brinkmanship, but a one-year pause is likely only to stabilize relations while buying each side time to reduce strategic dependence. The d\u00e9tente also underscored the rise in China\u2019s economic clout since Trump\u2019s first term as US president, a shift that is fueling interest in haven assets.<\/p>\n
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Bullion is headed for a second weekly drop and is down around 9% from a record high above $4,380 on Oct. 20. The retreat has most recently been aided by reduced expectations of further Federal Reserve rate cuts. Chair Jerome Powell warned that investors should rein in hopes for a December reduction after a quarter-point cut on Wednesday.<\/p>\n
Outflows from gold-backed exchange-traded funds have also removed some of the support that underpinned the scorching rally: Total gold ETF holdings fell for six days through Wednesday, the longest streak of declines since April, according to data compiled by Bloomberg.<\/p>\n
A \u201ccombination of a hawkish cut, a truce in the US-China trade war, plus heavy outflows from the gold ETFs are all adding to the corrective mood,\u201d said Robert Rennie, a commodities analyst at Westpac Bank Corp. Bullion could drop back to around the $3,750 level, he said.<\/p>\n
Despite its recent pullback, gold has still advanced more than 50% this year, with support from a push by mainstream investors to safeguard their portfolios against risk as well as accelerated central-bank buying, the World Gold Council said in a report on Thursday. Central banks purchased 28% more gold in the third quarter than during the preceding three months, reversing a downward trend seen earlier this year.<\/p>\n
Spot gold fell 0.7% to $3,995.63 an ounce as of 12 noon in Singapore after being up as much as 0.5% earlier. The Bloomberg Dollar Spot Index was flat. Silver dipped, while platinum and palladium edged higher.<\/p>\n","protected":false},"excerpt":{"rendered":"Gold bars. Photographer: Alessia Pierdomenico\/Bloomberg (Bloomberg) — Gold wavered around $4,000 an ounce as traders weighed a US-China…\n","protected":false},"author":2,"featured_media":107436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1877,46821,42,43,16540,40,38,41,39,49993,8429],"class_list":{"0":"post-107435","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-headlines","8":"tag-bloomberg","9":"tag-gold-bars","10":"tag-headlines","11":"tag-news","12":"tag-spot-gold","13":"tag-top-news","14":"tag-top-stories","15":"tag-topnews","16":"tag-topstories","17":"tag-us-china","18":"tag-xi-jinping"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/107435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=107435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/107435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/107436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=107435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=107435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=107435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}