Gold slips as traders eye progress in prolonged US-China trade talks 

LONDON: Gold edged lower on Tuesday as investors held back ahead of further signals from US-China trade negotiations continuing for a second day in London.

Spot gold fell 0.5 per cent to $3,311.16 an ounce as of 1:25 a.m. GMT, while US gold futures declined 0.7 per cent to $3,330.90. 

Senior officials from both countries resumed discussions covering a broad range of issues, including tariffs and access to rare earth minerals. The talks, which were originally scheduled to conclude on Monday, are now stretching into a second day. 

“With the outcome of the US-China talks still hanging in the balance, gold is trading cautiously as investors wait to see if any meaningful progress is made,” said Tim Waterer, chief market analyst at KCM Trade. 

President Joe Biden said his administration was making headway in the negotiations, pointing to early positive signs from the meetings. Last month, both sides agreed to temporarily halt new tariffs, easing pressure on global markets. 

“If traders walk away from this week’s talks believing a broader deal is within reach, we could see some unwinding of safe-haven demand,” Waterer added. 

Fresh data from China showed export growth slowed to a three-month low in May, with shipments hit by existing US tariffs. At the same time, factory-gate prices slipped further into deflation, marking the steepest decline in two years. 

Markets are also bracing for US consumer inflation figures due Wednesday, which could offer further clarity on the Federal Reserve’s next move. 

“A slight uptick in CPI would be expected, but a sharper rise might rattle markets and push some investors back into gold as a hedge,” Waterer said. 

Gold tends to benefit in times of economic or geopolitical uncertainty, and typically gains when interest rates are low. 

Among other precious metals, spot silver dropped 0.6 per cent to $36.51 an ounce, platinum fell 0.8 per cent to $1,210.46, and palladium slipped 0.2 per cent to $1,071.75. 

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