Gold Trades Steady this Morning in Asia

During Monday’s Asian trade hours, gold future contracts were steady and made up some ground.

They had hit 19 month lows last week but found some support with a weaker dollar today and upcoming low level trade talks between China and the United States.

As of 12:40 am GMT, the widely traded spot gold contract (XAU/USD) was flat. The contract was trading at $1,184.24 an ounce. Last week, this contract was at its lowest price point since January 2017. That was at $1,159.96.

The bullion shed some 2.2 percent last week. This was its sixth weekly loss in a row and its worst weekly performance since December 2017.

Front end U.S. gold futures rose today. They were up 0.6 percent to trade at $1,191.60 an ounce. The precious metal has shed over 14 percent from its April high. It has been hurt by a rally in the dollar which made the dollar priced metal more expensive for traders that used other currencies.

Gold Trader watch Global Political Tensions

Traders are looking for safe haven assets. This is thanks to ongoing trade tensions and a currency crisis in Turkey. Traders have been preferring the higher interest bearing asset of the dollar.

News of an upcoming low level trade summit between the US and China as well as a small recovery with the Turkish lira have calmed investor nerves.

China and the United States will hold talks this week. They hope to resolve an escalating trade war. This spat is threatening all trade between them.