Gold Expected to Remain Moderate Amid Trade Talks

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Gold has remained neutral around $3,300 for several days, supported by a weaker US dollar.


Investors are looking to the US-China trade talks on Tuesday for fresh impetus.


At 9.20am, gold was at $3,310.73, down 0.46% since it opened in early Asian trade on Tuesday.


US-China trade talks are set to meet for a second time in London and President Donald Trump has said the talks should go smoothly.


US officials have said they will lift some restrictions on some technology exports in exchange for China easing restrictions on rare earths shipments, particularly energy, defence and technology equipment.


The slight easing in trade tensions has supported the US dollar and weighed on gold asset prices. If the outcome of the talks is positive, it could open a lower channel for gold to move further.


Additionally, ongoing geopolitical risks in the Middle East are likely to increase safe-haven flows supporting the yellow metal.


The Israeli Foreign Ministry said that the crew of a Gaza aid ship was intercepted by Israel on Monday morning and docked at the Israeli port of Ashdod on Monday afternoon.


Data over the weekend showed that the People’s Bank of China (PBoC), China’s central bank, bought gold for the seventh consecutive month in May.

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