November 15, 2019 / 4:25 PM / 21 days ago

PRECIOUS-Gold slips as trade optimism derails safe-haven demand

 (Updates prices)
    * Gold, silver eye weekly gain
    * Market awaits U.S. Fed minutes next week

    By Asha Sistla
    Nov 15 (Reuters) - Gold prices slipped on Friday, on track
to break a three-session winning streak as stock markets hit
record highs following comments from U.S. officials that
progress was being made on the "phase one" trade agreement with
China.
    Spot gold        was down 0.3% at $1,466.78 per ounce at
2:08 p.m. EST (1908 GMT). 
    U.S. gold futures         settled down 0.3% at $1,468.50 per
ounce.
    "Overall trading gold has been impacted by the trade war and
there is tremendous optimism with the final stages of getting
stage one deal ratified," said Edward Moya, a senior market
analyst at OANDA.
    "This has been the biggest headwind for the global economy
and a major de-escalation is derailing the safe-haven demand
(for gold)."
    Gold prices have gained more than 14% so far this year as
the trade dispute between the world's biggest economies roiled
financial markets, stoking fears of a global economic slowdown
and prompting major central banks to reduce interest rates.
    Wall Street's main indexes hit record highs at the open on 
upbeat comments related to U.S.-China trade talks and strong
earnings.      
    U.S. Commerce Secretary Wilbur Ross said U.S.-China trade
talks were set to continue with a telephone call on Friday as
both sides seek to hammer out a phase one trade
pact.            
    Gold prices retreated from a near one-week peak hit on
Thursday, but were still set for a weekly gain of about 0.6%.
    "This week's been a story of gold really trying to claw back
some of the losses from the previous week, and it has done that
to a degree, we are up from the lows from $1,450 and gold is
attempting to get back above the 100-day moving average," said
Mitsubishi analyst Jonathan Butler.
    "Next week we've got some interesting data - the
manufacturing PMIs and FOMC meeting minutes coming out which
will show whether there were any dissenting voices in U.S.
Federal Reserve arguing for stronger set of rate cuts or whether
the consensus was really for keeping the rates on hold."
    U.S. Federal Reserve Chair Jerome Powell on Wednesday
signalled no further cuts will occur unless there is a
"material" change in the economic outlook.             
    Among other precious metals, silver        fell 0.4% to
$16.95 per ounce, but was on track for a gain of about 0.9% for
the week.
    Platinum        rose 1.2% to $891.19 per ounce and was set
to register a rise of about 0.5% this week.
    Palladium        was down 1.4% at $1,713.11 per ounce, on
course to fall for the second straight week at about 1.7%.

 (Reporting by Asha Sistla and Harshith Aranya in Bengaluru
Editing by Matthew Lewis and Tom Brown)
  
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