Gold prices steady amid trade war fears, Britain-Russia tensions

New York (Mar 15)  Gold prices on Thursday were steady near a one-week high hit in the previous session amid political tensions between Britain and Russia, and renewed worries about a global trade war.

Spot gold was nearly flat at $1,325.06 per ounce at 0741 GMT, while U.S. gold futures for April delivery were almost unchanged at $1,325.20 per ounce. "Gold has been supported by geopolitical factors as well as dollar weakness ... Stock markets were down overnight, we've got a bit of risk-aversion coming back in," said a Hong Kong based trader. He declined to be identified as he was not authorised to  speak with media.

Asian stocks sagged while government bonds attracted safe-haven demand amid mounting investor concerns that growing trade tensions will hurt the global economy.             

The Trump administration is pressing China to cut its trade surplus with the United States by $100 billion, a White House spokeswoman said on Wednesday, clarifying a tweet last week from President Donald Trump.            

On Wednesday, geopolitical tensions rose after the Russian
Foreign Ministry said it would retaliate after 23 of its
diplomats were expelled by British Prime Minister Theresa May
over a chemical attack on a former Russian double agent in
England that May blamed on Moscow.                   
    U.S. television commentator and conservative economic
analyst Larry Kudlow will replace Gary Cohn as President Donald
Trump's top economic adviser, adding another loyalist to Trump's
inner circle.            
    "I think Kudlow's comments will probably support more of a
trade war rhetoric than a stronger dollar," the trader said,
adding "gold needs to close above the $1,330 level to start
getting some traction".
    Trump also spooked investors on Tuesday by firing Secretary
of State Rex Tillerson, who was viewed as a supporter of free
trade.        
    "The market continues to trade the range with Asian buyers
stepping in under $1,320 and speculator profit-taking and
producer selling capping the topside around $1,330-$1,335," said
MKS PAMP Group trader Alex Thorndike.
    "Gold will likely remain range-bound into next week's U.S.
Federal Reserve meeting, with the market eagerly anticipating a
first rate rise for the year, given the economy's improved
data."
    Spot gold is biased to retrace towards support at $1,317 per
ounce, as it seems to have finished a bounce triggered by this
level, according to Reuters technical analyst Wang Tao.        
    Meanwhile, silver rose 0.3 percent to $16.54 per
ounce and platinum gained 0.2 percent to $960.30 per
ounce.
    Palladium edged 0.2 percent higher to $989.30 per
ounce after hitting $1,006.30 an ounce in the previous session,
its highest since March 1.

Reuters