Gold prices steady as US-China trade talks unfold in London

Gold prices remained steady on Tuesday as investors monitored ongoing U.S.-China trade discussions in London aimed at easing a trade dispute between the world’s two top economies.

FUNDAMENTALS

* Spot gold edged down 0.2% to $3,322.07 an ounce, as of 0032 GMT. U.S. gold futures fell 0.4% to $3,341.90.

* High-level trade talks between the U.S. and Chinese officials are extending into a second day, with discussions encompassing issues ranging from tariffs to rare earth restrictions. The dispute has raised fears of supply chain disruptions and slower global economic growth.

* U.S. President Donald Trump said his administration was “doing well” in the negotiations and noted positive reports from the talks. Last month, both sides agreed to a temporary pause in tariffs, offering some relief to financial markets. * China’s export growth slowed to a three-month low in May as U.S. tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world’s second-largest economy on both the domestic and external fronts.
* Meanwhile, Americans’ anxiety about the future path of inflation eased in May, as they also grew more upbeat about the state of their personal finances, according to a report released on Monday by the New York Federal Reserve.
* Investors are also awaiting U.S. inflation data on Wednesday that may adjust expectations for the timing of any rate cuts by the Fed.
* Safe-haven gold becomes more attractive during periods of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment as it is a non-yielding asset.

* Elsewhere, spot silver was unchanged at $36.72 per ounce, platinum fell 0.1% to $1,218.49, while palladium was up 0.2% to $1,076.22. DATA/EVENTS (GMT) 0600 UK ILO unemployment rate April 0600 UK Claimant Count Unem Chng May 0600 UK HMRC Payrolls Change May.