Gold slips from near 6-week high as trade tensions recede

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An employee of Tanaka Kikinzoku Jewelry K.K. displays a gold bar at the company's store in Tokyo, file. REUTERS/Issei Kato
  • Trump expels 60 Russian diplomats from United
  • StatesSPDR gold holdings fall
  • 0.38 percent on MondayGlobal trade war fears recede

By Maytaal Angel
LONDON, March 27  – Gold slipped on Tuesday as r iskap petite revived in global financial markets, lifting equities,but the precious metal was not far off a six-week high hit
overnight as investors remained cautious over political tensions
between Russia and the West.
Stock markets jumped in response to reports the United States a nd China were negotiating to avert a trade war and this dented the appeal of gold, seen as a safe haven.
The dollar edged up versus a currency basket –  making dollarp r iced gold costlier for non-U.S. investors – though it was notfar off a five week low hit earlier as returning risk appetite dented investor appetite for the U.S. currency.
“There’s going to be a few months of talks before uncertainty a round global trade situation can be erased, and inthe meantime gold will at times benefit,” said Simona Gambarini,
commodities economist at Capital Economics.
“In the short term we definitely see gains (for gold).”
Spot gold was down 0.3 percent at $1,348.65 per ounce at 1023 GMT, after touching $1,356.66 earlier in the session,
its highest since Feb. 16.
U.S. gold futures for April delivery fell 0.5 percent to $1,348.60 per ounce.
Moscow said on Tuesday it would respond harshly to a U.S.
decision to expel 60 Russian diplomats over a nerve agent attack on a former Russian spy in Britain, but was still open to
strategic stability talks with Washington.
“Gold prices continue to ratchet higher as the U.S. dollar weakens despite equity markets rebounding on easing concerns
about the likelihood of a trade war between China and USA,”
Stephen Innes, APAC trading head at OANDA, said in a note.
“Realistically there are plentitudes of market turmoil in the making that continue to make gold the go-to place to hedge
risk.”
China’s net gold imports via main conduit Hong Kong plunged 35.5 percent in February from the previous month, data showed on Tuesday.
Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.38 percent to 847.30
tonnes on Monday from 850.54 tonnes on Friday.
In other precious metals, spot silver was flat at $16.66 per ounce after hitting a near 3-week high of $16.80 earlier in the session.
Platinum was up 0.2 percent at $956.50 per ounce, while palladium was 0.3 percent higher at $977.

(Additional reporting by Eileen Soreng. Editing by Jane
Merriman)

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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