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Investing.com - Gold prices rose on Friday in Asia prior to the highly anticipated trade talks between the U.S. and China on Saturday, with an outcome unpredictable to many.
The gains were small though. Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, were up 0.77%, at $1,422.75 per ounce by 11:55 PM ET (03:55 GMT).
Gold had a setback the day earlier as the U.S. sent mixed signals about the trade deal ahead of the two-day G-20 summit, which kicked off today in Osaka, Japan.
Media reports suggested that the U.S. was willing to delay the next round of tariffs on $300 billion in Chinese goods, but U.S. President Donald Trump threatened more U.S. tariffs if no progress in trade talks is made this weekend.
Trump is set to meet his Chinese counterpart Xi Jinping on Saturday. Gold traders are looking to see if the two can strike a trade deal finally.
But disputes still exist between both sides. Citing people familiar with the matter, CNBC reported that China wants a “balanced” trade deal, but U.S. Trade Representative Robert Lighthizer told Chinese Premier Liu He in a phone call that balance will not happen.
Gold prices have been affected by the U.S.-China trade war this year. Investors have been buying the safe-haven gold to offset risks from the tariffs battle between the world’s two biggest economies, while they also use the greenback as hedge against the impacts of the trade spat.
Though gold made small gains ahead of the trade talks, it is still under pressure from tamped down expectations for a large rate cut in July by the Federal Reserve.
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