Investing.com - Gold prices steadied on Tuesday in Asia and remained above the $1,300 psychological mark amid renewed China-U.S. tension.
Gold futures traded at $1,304.97 per ounce by 1:46 AM ET (6:46 GMT) on the New York Mercantile Exchange's Comex division, up 0.2%.
Gold prices are now near eight-month highs. The yellow metal derived support from mounting uncertainties surrounding the upcoming Sino-U.S. trade talks after the U.S. Department of Justice unveiled two criminal cases against China’s technological giant Huawei on Tuesday.
One indictment accused the company of trying to steal trade secrets from T-Mobile, while the second indictment claimed the company violated Iran sanctions.
The news came as the U.S. and China prepare to hold a new round of trade talks this week. Ahead of the meetings, U.S. Secretary of Commerce Wilbur Ross said last week that the two sides are “miles and miles” apart from a trade deal, while White House Economic Adviser Lawrence Kudlow said U.S. President Donald Trump is optimistic about trade talks.
The gain in the yellow metal also came as the U.S. dollar continued to sink on bets that Federal Reserve Chairman Jerome Powell might deliver another dovish note in his Wednesday news conference after the central bank’s monthly meeting. The Fed is widely expected to hold interest rates steady.
The U.S. dollar index last traded at 95.380, down 0.1%.
The Fed raised rates four times last year. Since then, Powell has indicated a willingness to be "patient" with monetary tightening, saying it will be based more on economic performance as a whole rather than just inflation. Other Fed governors have also suggested they might tilt toward keeping rates flat for a while.