Gold stabilizes after the increase in US fees on Chinese goods

Arab and international

Economy News _ Baghdad

Gold prices rallied on Friday, bolstered by growing trade tensions after US President Donald Trump’s $ 200 billion tariff increase on Chinese goods entered into force, putting the precious metal on track for a weekly gain.

By 0705 GMT, spot gold settled at $ 1284 an ounce, up about 0.4 percent a week.

US gold futures also held steady at $ 1285 an ounce.

US President Donald Trump’s 200-billion-dollar increase in tariffs on Chinese goods entered into force on Friday, and Beijing said it would respond, exacerbating tensions as the two sides held talks in a last-ditch attempt to salvage a trade deal.

Senior US and Chinese trade negotiators wrapped up the first day of two-day talks on Thursday to salvage a trade deal on the brink of collapse as Washington went ahead with plans to raise tariffs on goods imported from China worth hundreds of billions of dollars.

Gold has fallen to its lowest level since the end of December late last week, but has risen nearly 1.4 percent since then.

But gold has seen some weakness despite overall risk aversion in the market, while other assets such as the yen and the Swiss franc have rallied.

For other precious metals, palladium rose 1 percent to $ 1307 an ounce, after falling more than 4 percent in the previous session to its lowest level since Jan. 4 to $ 1263.85. The metal is still bearish for a second straight week.

Silver rose 0.2 percent to $ 14.78 an ounce, while palladium rose 1.6 percent to $ 858.

Silver is heading for a second weekly decline, while platinum appears to be heading for a third straight decline.