Gold prices were little changed on Friday as investors refrained from making big bets amid doubts whether the United States and China could seal a trade deal.
The metal was, however, on track for its biggest monthly decline in three years, as upbeat comments by both countries earlier this month had raised hopes of an interim deal. Palladium scaled a new high of $1 844,50 an ounce, extending its record-setting run on supply deficit. Spot gold was flat at $1 458,47 per ounce by 0749 GMT, having shed 0,2 percent so far this week. US gold futures rose 0,3 percent to $1 458.
“(Gold) Market definitely is divided because previously most people were thinking that a trade deal is going to happen, and now they are not sure which side it is going to go, and that reflects in the trading prices,” said Brian Lan of Singapore dealer GoldSilver Central.
The dollar was set for its highest weekly finish against the yen since May, while global shares stalled just short of an all-time peak as some doubts remained about an interim deal.
US President Donald Trump on Wednesday signed into law congressional legislation backing protesters in Hong Kong, prompting Beijing to warn of “firm counter measures”.
The signing of the bill is a provocative but symbolic move, said Michael McCarthy, chief market strategist at CMC Markets, adding that: “China’s response was also largely a symbolic retaliation, this makes no impact to the trade negotiations.” — Reuters.