Gold prices yesterday held on to the previous session’s gains, as fading hopes for progress in US-China trade talks hit risk appetite, while markets also awaited clues on monetary easing by the US Fed.
Spot gold rose 0.4 percent to $1,510.50 per ounce as of 0723 GMT, and stood its ground above $1,500 after jumping as much as 1 percent in the previous session. US gold futures gained 0.8 percent to $1,516.20 per ounce.
“The market is holding back, and looking at what’s going to happen in the US-China trade talks on Thursday. If the trade dispute turns worse, we are going to expect some strong risk-off trade,” said Phillip Futures analyst Benjamin Lu. “The players who were short, rolled back on their positions. We are also seeing some weakness on the equity side.”
The US on Tuesday imposed visa restrictions on Chinese officials for the detention or abuse of Muslim minorities, angering Beijing ahead of high-level trade talks on Thursday and Friday.