The price of gold is calm
Mining News Pro - Gold prices fell on Wednesday`s Asian trading session following Tramp`s government plan to set higher tariffs on Chinese goods imports that led to a rise in dollar value.
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Gold rose 0.1 percent to $ 1221.78 an ounce for immediate delivery in Singapore`s current trading day.

In the US market, gold for delivery in December dropped 0.2 percent to $ 1221.90.

The dollar rose against the yuan and other currencies, after a source informed that the White House plans to offer a 25 percent tariff on imports of Chinese goods worth $ 200 billion. Such a proposal would create a new round of commercial hostilities in the war between US and China.

Stronging the value of the dollar The gold trades that are priced for this currency are more expensive for holders of other currencies.

Bloomberg Bank OCBC analyst Barnabas Ganen said a slight increase in gold prices last night was affected by demand for secure assets, but the weakness of the metal was trading on Wednesday morning trading because of the dollar`s rise. Trading tensions have pushed the flow of demand for safe assets to the dollar, and the currency seems to have a higher demand than gold as a safe asset.

Asia`s stock markets climbed early Wednesday after a report stating that the United States and China are about to resume their negotiations to resolve trade disputes, but continued to worsen as a result of trading, Reuters reports.

Meanwhile, investors are waiting for the monetary policy decision of the Federal Reserve, which is closing its two-day meeting today. The central bank is expected to re-emphasize the prospect of a gradual increase in interest rates this week, but investors are looking for signs of rising rates.

Gold is sensitive to rising US interest rates, as higher interest rates boost dollar and bond yields, while gold will be more expensive for non-US buyers.

Wang Tao, a Reuters technical analyst, predicted that gold for immediate delivery would be $ 1214 to $ 1,226 per ounce.

In the market for other precious metals, each ounce of silver for immediate delivery dropped 0.2 percent to $ 15.48. An ounce of platinum for immediate delivery was up by 0.1 percent, traded at $ 835.50, and palladium for immediate delivery rose 0.1 percent to $ 930.60 a pound.


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