Gold prices remained steady in Asian trade on Friday, June 1, on renewed fears of a global trade war,
while a firm dollar and positive U.S. economic data weighed on the market.
Spot gold was nearly unchanged at $1,298.29 per ounce by 0641 GMT, while U.S. gold futures for June delivery were down 0.2 percent at $1,298 per ounce.
Spot gold is down slightly this week. Gold’s current price movement reflects the relatively calm attitude of investors, said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.
“These uncertainties are to be with us for quite some time, so sooner or later investors will get used to it,” To said, adding that he expected gold to trade in the $1,296-$1,305 range.
Fears of a global trade war emerged after the United States on Thursday went ahead with tariffs on aluminium and steel imports from Canada, Mexico and the European Union, ending the two-month exemption it had given earlier.
Canada and Mexico retaliated against this decision. Political and economic tensions may support gold prices to a certain extent, but an interest rate hike from the U.S. Federal Reserve this month may provide the metal some kind of resistance, To said.
Holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, fell 0.52 percent to 847.03 tonnes on Thursday.
In other precious metals, spot silver gained 0.2 percent to $16.39 an ounce, but was down about 0.3 percent this week.
Platinum rose 0.2 percent to $903.20 per ounce, while palladium was nearly unchanged at $984.60 an ounce. Bothwere headed for a second straight weekly gain.
