New York, US (BBN) – Gold dipped in Asia on Wednesday as investors noted political risk from the launch of a medium-range ballistic missile by North Korea ahead of a summit between US President Donald Trump and Chinese President Xi Jinping this week that will discuss the Korean peninsula in addition to trade and looked ahead to jobs figures from ADP for further clues on the next likely Fed rate hike.
Gold for April delivery on the Comex division of the New York Mercantile Exchange dipped 0.05 per cent to $1,257.75 a troy ounce. Silver futures on the Comex, edged down 0.16 per cent to $18.2933 a troy ounce while copper futures were last quaoted weaker at 2.616 a pound, reports
Overnight, gold prices traded close to one-week highs on Tuesday, despite a leap in the US dollar, after the release of bullish US trade data.
Gold continued to trade within narrow range with upside bias throughout the session, but a firmer dollar capped momentum in the yellow metal, after bullish trade data, showed that the US trade deficit narrowed by more than expected in February.
The Commerce Department said Tuesday, the trade deficit shrank by 9.6 per cent to $43.6 billion, while January’s trade deficit was revised down to $48.2 billion from $48.5 billion.
Economists had forecast the trade gap contracting to $44.8 billion in February.
Investors poured into the yellow metal, which is considered a safe haven asset, ahead of a crucial meeting on Thursday between US President Donald Trump and Chinese President Xi Jinping.
Meanwhile, a flurry of hawkish comments from Federal Reserve officials over the past week failed to dampen demand for gold.
Philadelphia Fed President Patrick Harker said on Monday, the Federal Reserve should raise interest rates twice more this year, provided growth in the labor market and inflation momentum continues.
According to’s Fed Rate monitor tool, 50 per cent of traders expect a June rate hike.
Gold is sensitive to moves in US rates, which lift the opportunity cost of holding non-yielding assets such as bullion.