Gold holds ground on weak US data, trade deal concerns

U.S. gold futures were flat at ,489.20 per ounce. (Reuters photo)

Gold prices on Tuesday held steady near a more than one-week high hit in the previous session, as disappointing U.S. data and concerns about an interim Sino-U.S. trade deal supported the safe-haven metal in holiday-thinned trade.

FUNDAMENTALS

* Spot gold was unchanged at $1,485.20 per ounce by 0047 GMT. Prices hit their highest since Dec. 12 at $1,485.91 on Monday. U.S. gold futures were flat at $1,489.20 per ounce.

* New orders for key U.S.-made capital goods barely rose in November and shipments fell, suggesting business investment will probably remain a drag on economic growth in the fourth quarter, data on Monday showed.

* Canada’s economy unexpectedly shrank by 0.1% in October, the first monthly decline since February, partly because of a U.S. auto strike that hit manufacturing, Statistics Canada data indicated on Monday.

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* Ratcheting up trade concerns, a top diplomat from China said on Monday U.S. trade, economic and scientific restrictions on China and “smears” against its sovereignty were impacting global stability and development.

* China will lower tariffs on products ranging from frozen pork and avocado to some types of semiconductors next year as Beijing looks to boost imports amid a slowing economy and a tariff dispute with the United States.

* Mining company AngloGold Ashanti and its joint venture partner IAMGOLD plan to sell their stake in the Sadiola project in Mali for $105 million, as the South African company looks to streamline its portfolio.

* Gold production in Russia rose 19.5% in the first eight months of 2019 to 232.16 tonnes from 194.23 tonnes a year earlier, Russia’s finance ministry said.

* Elsewhere, palladium fell 0.3% to $1,870.38 per ounce. Silver was flat at $17.42 per ounce, while platinum shed 0.7% to $929.53.