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PRECIOUS-Gold eases as trade-deal hopes lift risk mood

Published 22/10/2019, 02:03
PRECIOUS-Gold eases as trade-deal hopes lift risk mood
XAU/USD
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GC
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MIAPJ0000PUS
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Oct 22 (Reuters) - Gold prices eased on Tuesday as reports

that trade talks between Washington and Beijing were making

progress cheered markets, but a dearth of concrete signs kept

investors on the edge.

FUNDAMENTALS

* Spot gold XAU= was down 0.1% at $1,482.41 per ounce, as

of 0038 GMT. U.S. gold futures GCcv1 dropped 0.2% to

$1,485.80.

* U.S. President Donald Trump said on Monday that U.S.-China

trade talks were making progress, adding to a comment he made on

Friday that a trade deal will be signed by the time the

Asia-Pacific Economic Cooperation meetings take place in Chile

on Nov. 16-17. * White House adviser Larry Kudlow also said tariffs

scheduled for December could be withdrawn if progress is made.

* This cheered markets and pushed the benchmark S&P 500

stock index to within striking distance of a record high on

Monday. .N MSCI's broadest index of Asia-Pacific shares

outside Japan .MIAPJ0000PUS added a slight 0.1% in early trade

on Tuesday. MKTS/GLOB

* The risk-on sentiment in the market dented demand for the

bullion, often seen as an alternative investment during times of

political and financial uncertainty.

* Meanwhile, in the middle of delicate talks, China is

seeking $2.4 billion in retaliatory sanctions against the United

States for failing to comply with a World Trade Organization

ruling in a case that highlights White House complaints about

the global trade body. * The two major economies have imposed a series of

tit-for-tat tariffs over the past 15 months that have roiled

financial markets and fanned global recessionary fears.

* Investors now await a U.S. Federal Reserve meeting at the

end of the month that could offer further signs of monetary

easing. FED/DIARY

* Across the Atlantic, Britain's Prime Minister Boris

Johnson appealed to lawmakers on Monday to approve his Brexit

bill this week, saying neither he, the European Union or the

public wanted any more delays to Britain's departure from the

bloc. (GMT)

1000 UK CBI Trends - Orders Oct

1200 Brazil IPCA-15 Mid-Month CPI Oct

1400 US Existing Home Sales Sept

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