November 15, 2019 / 5:03 AM / a month ago

PRECIOUS-Gold falls as U.S.-China trade deal hopes whet risk appetite

 (Updates prices)
    * U.S. retail sales, industrial production due later in the
day

    By Sumita Layek
    Nov 15 (Reuters) - Gold prices fell on Friday as risk
appetite was whetted by comments from White House economic
adviser Larry Kudlow that the United States is nearing an
interim trade pact with China.
    Spot gold        was down 0.5% at $1,464.17 per ounce, as of
0754 GMT, but was set to rise about 0.4% this week.
    U.S. gold futures        were down 0.6% at $1,464.30 per
ounce.
    Asian stocks jumped, denting bullion's safe-haven appeal,
tracking a record S&P 500 finish, as hopes revived that the
world's top two economies were nearing a phase 1 deal.
           
    Kudlow said on Thursday, an agreement could come soon.
            
    "There is optimism in the market that the first phase of the
trade deal will be signed soon. So, gold and silver prices are
falling," said Jigar Trivedi, a commodities analyst at
Mumbai-based Anand Rathi Shares & Stock Brokers, adding prices
could fall up to $1,420.
    A steady dollar index        against a basket of six major
currencies also weighed on the bullion. 
    Gold prices have gained more than 14% this year as the
on-again, off-again trade spat has roiled financial markets and
prompted fears of a global economic slowdown.
    A Reuters poll of economists showed a permanent truce is
unlikely over the coming year, and, while concerns have eased
over a U.S. recession, an economic rebound is also not expected
soon.             
    Ilya Spivak, a senior currency strategist at DailyFx said,
risks associated with the political and economical issues like
Brexit, Hong Kong and trade talks are "too great for something
not to go wrong," and these risks will put a floor under gold
prices and if something goes really wrong then prices will go
higher.
    In Hong Kong, anti-government protesters paralysed parts of
the financial hub for a fifth day.             
    Investors are now awaiting the U.S. retail sales and
industrial production data for the previous month, expected
later in the day.
    Among other precious metals, silver        was down 0.8% to
$16.87 per ounce. It was poised to gain 0.5% this week, while
platinum        dipped 0.3% to $877.26 per ounce and was set to
register a weekly decline of 1%.
    Palladium        shed 0.3% to $1,731.08 per ounce, enroute
to fall 0.8% this week.

 (Reporting by Sumita Layek in Bengaluru; Editing by Shailesh
Kuber and Uttaresh.V)
  
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