November 21, 2019 / 11:13 AM / 17 days ago

PRECIOUS-Gold eases as China invites U.S. officials for talks

    * Further declines potentially on the cards for gold-
analyst
    * Platinum dips for first time in seven sessions
    * Palladium falls after three straight sessions of gains

 (Updates prices)
    By Karthika Suresh Namboothiri
    Nov 21 (Reuters) - Gold prices on Thursday eased from the
last session's two-week high after a report that China has
invited top U.S. negotiators for a new round of face-to-face
talks, and is seeking to reach an initial trade agreement with
the United States.
    Spot gold        dipped 0.1% to $1,470.45 per ounce as of
1227 GMT. Prices had notched a two-week high of $1,478.80 in the
previous session, before turning negative, after the United
States passed a bill supporting Hong Kong anti-government
protesters.
    U.S. gold futures         dipped 0.3% to $1,470.40 per
ounce.
    "Even though there is more tension between the U.S. and
China, the gold market takes a wait-and-see stance. It looks
like the market is in general a bit tired of news on the trade
front," said ABN Amro analyst Georgette Boele.
    "There have been some buyers on dips and the holders of gold
still hope prices will go higher. But if this does not
materialise in the near-term, they will likely take profit on
longs, pushing prices lower."
    China will strive to reach an initial trade agreement with
the United States as both sides keep communication channels
open, the Chinese commerce ministry said on
Thursday.            
    Beijing has also invited top U.S. trade negotiators for a
new round of face-to-face talks, the Wall Street Journal
reported on Thursday citing unnamed sources.             
    The market, yet to swallow the report, was still wary about
the fate of a trade deal after the United States passed two
bills intended to support protesters in Hong Kong and send a
warning to China about human rights.                         
    Hong Kong has seen increasingly violent protests against
Chinese rule for several months. The passage of a U.S. law
supporting the protesters is bound to anger Beijing and
potentially undermine efforts to secure a trade deal.
    Gold, which is used as a safe investment during times of
economic and political crisis, has gained more than 14% so far
this year, on track for its biggest yearly gain since 2010.
    "Gold bulls are not giving up yet but the fight may be in
vain, with $1,480 continuing to resist any marches on it," Craig
Erlam, OANDA senior market analyst, said in a note.
    "The consolidation we've seen over the last 10 days has
provided some reprieve for the yellow metal but it hasn't yet
changed the outlook, with further declines potentially on the
cards."
    Other precious metal prices were lower, with silver       
down 0.3% at $17.08, and palladium        slipping 0.2% to
$1,762.87 an ounce, declining after three straight days of
gains.
    Platinum        dipped 0.5% to $912.48 per ounce, ending a
six-day winning streak.

 (Reporting by Karthika Suresh Namboothiri in Bengaluru
Editing by Alexandra Hudson and Saumyadeb Chakrabarty)
  
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