Gold snaps two-day losses amid trade talk hopes

by Yihui Xie 

Gold steadied — after losing almost 2% over the previous two sessions — as another round of US-China trade talks offered hope tensions between the two largest economies can be eased.  

Bullion traded above $3,315 an ounce, after dropping Friday as better-than-expected US jobs data reduced some concerns about the nation’s economic downturn. Top trade negotiators from Washington and Beijing are set to hold fresh talks in London on Monday, with China’s dominance in rare earths production a major focus. 

Investors will also be watching the outcome of an auction of long-term US government bonds on Thursday. Global pushback against the debt is turning what would normally be a routine sale into a highly anticipated event, and a poor result would likely benefit the precious metal.  

That could add more tailwinds to bullion’s rally of more than a quarter this year as investors favor havens in an increasingly turbulent economic and geopolitical environment. Central banks have buttressed demand, and the People’s Bank of China extended its gold-buying streak to a seventh month in May, according to data released over the weekend.  

Spot gold rose 0.2% to $3,315.69 an ounce as of 1:48 p.m. in Singapore. The Bloomberg Dollar Spot Index fell 0.2%. Platinum jumped more than 2%, building on a rally of more than 10% last week. Silver edger higher, while palladium dipped.