3 months ago
Commodities

Gold Prices Flat as U.S. Dollar Steadies

Investing.com - Gold prices were flat on Thursday in Asia as the U.S. dollar steadied. Gold Futures for February delivery last

Investing.com - Gold prices were flat on Thursday in Asia as the U.S. dollar steadied.

Gold Futures for February delivery last traded at $1,250.4 at 1:15 AM ET (06:15 GMT) on the Comex exchange, down 0.02%.

Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies inched up 0.1% to 97.078.

"Market sentiment is neutral today... We've got a little more positive sentiment than we anticipated from U.S.-China trade tensions, which is weighing on the topside," said Stephen Innes, APAC trading head at OANDA in Singapore.

"Dollar hasn't made much moves and that's the real signpost for gold as they are still highly correlated."

Expectations of the U.S. Federal Reserve's dovish tone at its meeting next week were cited as supportive for the yellow metal.

Fed chairman Jerome Powell’s comments last week that US interest rates are closing in on “neutral” levels were seen as an indication that policymakers may pause the programme of rates rises in the new year.

Meanwhile, markets are also paying close attention to the U.S.-China trade tension, as reports on Wednesday showed growing signs that China appeared to be taking more steps to tone down its high-tech industrial development push.

Citing two people familiar with the matter, Bloomberg reported that Beijing may delay the “Made in China 2025” plan by a decade to 2035. China will also seek to be more open to participation by foreign companies, the report said.

The “Made in China 2025” is a strategic plan announced in May 2015. The plan aims to lessen China’s dependency on imported technology and has been a main target in Trump’s trade war.