Gold Slides As Dollar Strengthens
Gold prices eased on Monday as rising U.S.-China tensions and continued uncertainty over a Brexit trade deal drove up demand for the dollar.
The downside, however, remained capped as grim U.S. jobs data released on Friday fueled optimism over a U.S. stimulus deal.
Both spot gold and U.S. gold futures were down 0.2 percent at $1,832.98 per ounce and $1,835.70, respectively.
U.S.-China tensions are on the rise, with Reuters reporting that the United States is preparing to impose sanctions on at least a dozen Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.
Traders have started pricing in the prospect of a ‘no deal’ outcome to EU-UK trade negotiations after the Sun newspaper reported that Prime Minister Boris Johnson was ready to walk away from negotiations “within hours” amid stubborn differences over fishing rights in U.K. waters, fair competition and ways to solve future disputes.
Johnson will call time on a Brexit-deal if Brussels refuses to budge from their “outrageous” demands, it was said.
The European Central Bank is expected to announce further bond-buying when it meets on Thursday.
In the U.S., weak U.S. jobs data released last week helped raise expectations of a new fiscal stimulus package being passed before year-end.