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Investing.com-- Gold prices moved in a tight range in Asian trade on Wednesday as risk appetite was boosted by speculation over a potential talk between U.S. President Donald Trump and Chinese President Xi Jinping.
But bullion prices remained heady as safe haven demand remained underpinned by uncertainty over the U.S. economy, especially after Trump doubled his tariffs on steel and aluminum.
An escalation in military action between Russia and Ukraine, along with reports that Iran-U.S. nuclear talks were falling through, also kept markets largely geared towards havens.
Spot gold was flat at $3,353.71 an ounce, while gold futures for August steadied at $3,377.72/oz by 00:51 ET (04:51 GMT).
Gold muted as Trump-Xi talk speculation spurs some risk taking
Gold’s rangebound performance on Wednesday was driven chiefly by some improvement in risk appetite, after White House officials said Trump and Xi will talk sometime this week.
The talks could help renew U.S.-China trade negotiations, which Washington admitted had stalled in recent weeks. The U.S. and China had agreed in May to slash their respective trade tariffs, albeit temporarily.
While the trade truce had sapped some haven demand for gold, the yellow metal still remained relatively well-bid, especially amid growing uncertainty over a permanent trade deal.
The yellow metal saw renewed bids this week after Ukraine launched a series of devastating strikes against Russia, most recently an underwater explosion targeting a bridge linking Russia to Crimea.
Gold is trading up nearly 2% this week.
Dollar recoups some losses, pressures metals
The dollar saw some strength this week amid speculation over U.S.-China trade talks, while also receiving bids ahead of key nonfarm payrolls data due on Friday.
The greenback was also buoyed by several Federal Reserve officials reiterating that interest rates will remain unchanged in the near-term.
Resilience in the dollar pressured broader metal prices. Platinum futures rose 0.4% to $1,079.40/oz, while silver futures steadied at $34.618/oz on Wednesday.
Among industrial metals, copper prices took some support from hopes of easing economic pressure on top importer China, especially if dialogue between Washington and Beijing proceeds. Benchmark copper futures on the London Metal Exchange rose 0.2% to $9,643.10 a ton, while U.S. copper futures rose 0.2% to $4.8750 a pound.