Gold steady as US-China trade uncertainty offsets strong US jobs data

[BENGALURU] Gold prices held steady on Wednesday (Jun 4) as the uncertainty over US-China trade relations offset the impact of strong US jobs data that boosted risk appetite.

Spot gold was steady at US$3,354.51 an ounce as at 0108 GMT. US gold futures were also steady at US$3,378.20.

The US should create the necessary conditions for bilateral relations to get back onto “the right track”, China’s Foreign Minister Wang Yi told the US ambassador to Beijing on Tuesday.

Meanwhile, the White House signalled that US President Donald Trump and Chinese President Xi Jinping might engage in talks later this week to address the trade disagreements.

The US dollar index fell 0.1 per cent, making greenback-priced bullion less expensive for overseas buyers.

Economic data showed US job openings rose in April, though layoffs surged to their highest level in nine months, hinting at softening labour market conditions.

Investors are now focused on the May employment report due on Friday.

Federal Reserve officials reiterated their cautious policy stance on Tuesday, citing the risks posed by ongoing trade tensions and economic uncertainty.

Meanwhile, the Organisation for Economic Cooperation and Development said on Tuesday that global economic growth is slowing more sharply than was anticipated a few months ago, as the fallout from the Trump administration’s trade war takes a heavier toll on the US economy.

In trade developments, the US announced it would forgo doubling steel and aluminium tariffs on Britain.

Elsewhere, spot silver rose 0.1 per cent to US$34.51 an ounce, platinum was down 0.1 per cent to US$1,072.86 and palladium shed 0.1 per cent to US$1,009.55. REUTERS