Gold prices fell on Thursday as the lingering trading war between the United States and China supported demand on bonds and the U.S. dollar at the expense of gold bullion.
Spot gold prices fell 0.43 percent to $1,275.55 per ounce, as of 09:42 GMT, while gold in U.S. futures contracts slipped 0.46 percent to $1,275.25 an ounce.
Worries of the Sino-U.S. trade dispute, which raised concerns about global growth outlook, intensified overnight after China’s threat to hit back.
“We advise the U.S. side not to underestimate the Chinese side’s ability to safeguard its development rights and interests. Don’t say we didn’t warn you!” China’s biggest Chinese newspaper People’s Daily said warned on Wednesday.
Trade jitters and its potential impact on growth are still dominating investors vibes, sending global stocks lower and enhancing demand on safe havens.
However, it seems that U.S. Treasury bonds and dollar are still perceived as better refuges compared to gold.
United States 10-year bond yield rose 1.8% earlier today to 2.276 percent after falling to a low of 2.210% on Wednesday, the lowest level in nearly 20 months.
The U.S. dollar index, on the other hand, hit a one-week high at 98.13, while currently hovering around 98.03.
Gold prices may find support at the current levels, as the price is slightly
above the daily SMA-200 located at $1276.