MTS Help Center

• Gold fell as the dollar strengthened ahead of trade talks between the US and Chinese leaders at the G20 summit, while palladium prices crossed the $US1,200 per ounce mark for the first time. Spot gold dipped 0.29 per cent to $US1,220.01 per ounce. US gold futures settled down 0.33 per cent at $US1,220.10 an ounce.

• Gold (XAU/USD) is trading in a sideways manner in Asia amid risk-on action in the financial markets.

The trade truce has likely put a strong bid under the risk assets. For instance, the S&P 500 futures are up 1.25 percent. The Australian dollar, a proxy for China, gapped higher against the greenback. Further, the offshore Chinese yuan exchange rate has appreciated by 0.4 percent.

• As a result, there is little incentive to bid for zero-yielding safe-haven metal like gold. As of writing, it is trading at $1,221 per Oz, down 0.10 percent on the day.

• The yellow metal, however, could find takers if the FX desks begin selling dollars across the board. That, however, may not happen as a temporary pause in the US-China trade war was more or less priced-in. As of now, the dollar index, which tracks the value of the greenback against majors, is down just 0.15 percent.

• "The markets now have more clarity into issues such as the US Federal Reserve's interest rate thinking, the Italian budgetary drama, and the US-China trade war," said Ronan Manly, a precious metals analyst at Singapore-based dealer BullionStar.

"As such, this clarity and visibility could cap any further gains for gold in the short term. So, a major move above the current range is not likely."