Gold prices held steady on Friday and the dollar eased as doubts resurfaced about the prospects for a formal U.S.-China trade deal.
Spot gold edged down 0.1 percent to $1,466.22 per ounce, after having fallen nearly 2 percent on Thursday to hit their lowest level in more than a month on news that China and the United States have agreed to roll back tariffs on each other’s goods if the first phase of a trade deal is reached between the countries. U.S. gold futures were up marginally at $1,467.25 per ounce.
Fresh worries over U.S.-China trade talks unnerved markets, offsetting better-than-expected trade data from China showing that exports and imports contracted less than expected in October.
China-U.S. trade-deal optimism waned a little bit after reports suggested that a plan to roll back tariffs on each other’s goods in phases has met opposition from some advisers to U.S. President Donald Trump.
There is a divide within the administration over whether rolling back tariffs will give away U.S. leverage in the negotiations, Reuters quoted current and former U.S. administration officials as saying.
Chinese exports fell 0.9 percent year-on-year in dollar terms, declining for the third straight month. Economists had expected a 3.9 percent fall following September’s 3.2 percent contraction.
Imports declined 6.4 percent from a year earlier, slower than the forecast of 7.8 percent fall. This was the sixth consecutive decrease reflecting subdued demand.