November 19, 2019 / 5:35 AM / 19 days ago

REFILE-PRECIOUS-Gold prices steady as U.S.-China trade deal doubts linger

 (Refiles to say 'latest policy meeting' in paragraph 12)
    * Investors await Fed minutes on Wednesday
    * Dollar hovers near two-week low

    By Diptendu Lahiri
    Nov 19 (Reuters) - Gold held steady on Tuesday, after
hitting its highest since Nov. 7 earlier in the session, as
doubts about a trade deal between the United States and China
dented risk sentiment.
    Spot gold        was little changed at $1,471.90 per ounce
as of 0559 GMT. 
    U.S. gold futures        inched up 0.07% to $1,472.90 per
ounce.
    "We're not seeing any big moves at the moment and given the
proximity to the $1,490-level, movements will be sideways in the
short term, unless Beijing or Washington come and say that a
trade deal is unlikely," said Michael McCarthy, chief market
strategist at CMC Markets.
    Asian share markets were mixed as another day awaiting
clearer news on the progress of the trade negotiations left
investors bereft of trading motivation.            
    Overnight, CNBC had reported the mood in Beijing was
pessimistic about the prospects of sealing an agreement.
            
    "The to and fro between the two parties surrounding the
first phase of the deal is keeping prices in a tight range," 
ANZ analyst Daniel Hynes said.
    "Lingering global economic scenario and a weaker dollar is
providing some support to gold."
    The dollar held near a two-week low.       
    Market participants also kept a close eye on the unrest in
Hong Kong, with dozens of protesters in the financial hub
staging a dramatic escape from a university campus sealed off by
police on Monday.             
    Gold is considered a safe store of value during economic or
political uncertainties.
    The focus now shifts to minutes from the U.S. Federal
Reserve's latest policy meeting, due on Wednesday.             
    The Fed cut rates three times this year — in part to offset
what it views as damage done by the tariff war. But after their
meeting in October, policymakers signalled they would lower
rates no further unless the economy took a serious turn for the
worse.
    "It is worth noting that recent gains (in gold) have been
led by fast-money interest in the face of (exchange traded fund)
ETF outflows, positioning that is fickle amid price volatility,"
according to MKS PAMP.
    Holdings of the SPDR Gold Trust      , the world's largest
gold-backed exchange-traded fund, fell 0.6% to 891.79 tonnes on
Monday from Friday.          
    Elsewhere, silver        rose 0.6% to $17.12 per ounce,
while palladium        fell 0.3% to $1,732.93 per ounce. 
    Platinum        advanced 0.5% to $898.10 per ounce. 

 (Reporting by Diptendu Lahiri in Bengaluru; Editing by Clarence
Fernandez and Uttaresh.V)
  
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