Gold trims gains as White House dismisses news of US-China trade-talk fallout

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  • Gold is seeing a solid two-way business in Asia. 
  • The yellow metal jumped to $1,517 on reports of the US-China trade talk fallout.
  • White House dismissed the news, leading to a pullback in Gold.

Gold is currently trading at $1,512 per Oz, representing 0.30% gains on the day, having hit a high of $1,517 at 22:55 GMT on Wednesday.

The yellow metal had picked up a strong bid at lows near $1,505 on reports stating that lack of progress in the US-China trade talks.

High-level talks are expected to last for only one day, with Liu He and his team now planning to leave Washington on Thursday, South China Morning Post cited a person with knowledge of the matter. The news report triggered risk aversion, sending the futures on the S&P 500 down by more than 0.5%.

The risk-off, however, has weakened somewhat in the last few minutes with White House’s spokesperson Judd Deere calling SCMP report inaccurate. Deere told CNBC’s Washington Correspondent Kayla Tausche that the White House is not aware of a change in the Vice Premier Liu His plans at the time and the Chinese are scheduled to depart Friday evening.

Gold trimmed gains after Deere’s comments. Prices dropped to $1,507 a few minutes before press time, before bouncing back to $1,512. The yellow metal, however, may again rise to levels near $1,520 if the White House confirms the news of trade-talk fallout. It is worth noting that Fox Business is also reporting an early end of trade talks. 

Technical levels

 

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