Circle Internet Group stock falls after first downgrade
* Gold and silver technically pretty bullish -analyst
* Palladium rises to a record high of $1,704.59/oz
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
(Updates prices)
By K. Sathya Narayanan
Oct 10 (Reuters) - Gold prices retreated from a one-week
peak on Thursday, while palladium prices marked an all-time
high, after a report suggested that China wants to reach an
agreement with the United States to avoid further escalation of
a ongoing trade row.
Spot gold XAU= fell 0.6% to $1,497.01 per ounce by 01:51
p.m. EDT (1751 GMT), having earlier hit a one-week high.
U.S. gold futures GCcv1 settled down 0.8% at $1,500.90 an
ounce.
"It is all about the tariffs. It is the he-said-she-said
that whips the market back and forth. Right now you have the
short-term traders selling gold on the tariff news," said
Michael Matousek, head trader at U.S. Global Investors.
Chinese Vice Premier Liu He said that Beijing is willing to
reach an agreement with the Washington on matters both sides
care about, China's Xinhua state news agency reported.
Earlier, gold rose to $1,516.77 - its highest since Oct. 3 -
on a report that the Chinese delegation was planning to leave
Washington after just a day of minister-level meetings, a day
earlier than expected.
Trade talks between the two countries started on Thursday.
Markets have been on edge for months over the U.S.-China
trade tensions. If negotiations break down again, nearly all
Chinese goods imports into the United States - more than $500
billion - could be subject to punitive tariffs by Dec. 15.
The major concern is that nothing is going to come out of
these negotiations, just kicking the can further down the road,
according to Daniel Pavilonis, senior market strategist at RJO
Futures.
"So, if there is some type of an agreement, depending on
what type of agreement it is, you would probably see a gold
sell-off, at least that would be the initial reaction,"
Pavilonis said, adding "gold and silver, from a technical
standpoint, look pretty bullish."
Palladium XPD= was 0.9% higher at $1,697.62, having hit a
record $1,704.59.
"For palladium, heightening (U.S.-China) tensions had
actually weighed but prices have remained elevated as the market
was undersupplied," said Suki Cooper, precious metals analyst at
Standard Chartered Bank.
However, "as we had some positive trade developments
(today), that has helped to support sentiment for more industry
buyers."
She added that inflows into exchange-traded funds suggested
there was incremental demand for palladium but speculators could
drive price fluctuations in the near term.
Platinum XPT= rose 1% to $900.84 an ounce, while silver
XAG= fell 1% to $17.53 per ounce.