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

Gold prices remained steady on Tuesday as investors monitored ongoing US-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 USD 3,322.07 an ounce, as of 0032 GMT. US gold futures fell 0.4% to USD 3,341.90.

* High-level trade talks between the US 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.

* US 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 US 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 US 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 USD 36.72 per ounce, platinum fell 0.1% to USD 1,218.49, while palladium was up 0.2% to USD 1,076.22.

(Reporting by Anmol Choubey in Bengaluru; Editing by Rashmi Aich)