January 14, 2020 / 2:00 AM / 13 days ago

PRECIOUS-Gold falls ahead of U.S.-China trade deal on improved risk appetite

    Jan 14 (Reuters) - Gold fell on Tuesday, as investors opted
for riskier assets after the United States dropped China's
designation as a currency manipulator ahead of an interim deal
between the two sides to ease their trade dispute.
        
    FUNDAMENTALS
    * Spot gold        dipped 0.7% to $1,537.67 per ounce by
0126 GMT. U.S. gold futures        fell 0.9% to $1,537.10.
    * Global equities rallied to reach fresh record highs as the
world's two biggest economies prepare to formalise a truce.
           
    * U.S. Trade Representative Robert Lighthizer said that the
Chinese translation of the deal was almost completed and would
be made public on Wednesday, just prior to a signing ceremony.
            
    * The U.S. Treasury on Monday said China should no longer be
designated a currency manipulator in a long-delayed semi-annual
currency report, reversing its August finding; the decision
coincided with the arrival of a high-level Chinese delegation
for a trade deal signing.             
    * However, a senior U.S. Chamber of Commerce official said,
the deal "stops the bleeding" but is not an end to the trade war
as significant challenges remain.             
    * Meanwhile, the dollar index        held steady against a
basket of rivals, making gold expensive for holders of other
currencies.       
    * U.S. Federal Reserve officials may broadly agree that
interest rates are unlikely to change soon, but they differed
Monday on how concerned they are about developing financial
risks in assessing when a rate hike might be appropriate.
            
    * Resolute Mining Ltd said on Monday it entered into talks
with private equity fund EMR Capital Management Ltd to sell its
Ravenswood gold mine in Australia for up to A$300 million ($207
million).             
    * Elsewhere, palladium        fell 0.3% to $2,126.26 an
ounce. Silver        was down 1% to $17.79 per ounce, while
platinum        slipped 0.6% to $967.78.

DATA/EVENTS (GMT)
0630   India   WPI Inflation YY       Dec
1330   US      CPI MM, SA             Dec
 n/a   China   Exports, Imports YY    Dec
 n/a   China   Trade Balance          Dec

 (Reporting by Asha Sistla in Bengaluru; Editing by Shailesh
Kuber)
  
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