Gold drops on profit-taking; set for third weekly rise

Gold drops on profit-taking; set for third weekly rise

Gold bars and coins are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich (Reuters) – Gold slipped on Friday as investors locked in profits and equities recovered, but fears over a global economic slowdown and a lack of clarity on the U.S.-China trade war kept the metal on track for its third consecutive weekly gain. Spot gold was down 0.6% at $1,513.80 per ounce as of 0729 GMT, but is up 1.2% so far this week after rising in the previous two weeks. U.S. gold futures dipped 0.3% to $1,525.50 an ounce. Limiting gold’s momentum, global financial markets regained footing on Friday, as China hinted at more support for its economy, amid growing expectations of aggressive stimulus from all the major central banks. "Gold is consolidating here. The important consideration is that none of the headwinds have gone away; the tariffs got delayed a bit, but the underlying trade war remains and lower yields are supportive for gold," said Ilya Spivak, senior currency strategist with DailyFx. "Markets are looking ahead for the Jackson Hole symposium. In context of recent gains that might give us some corrective pullbacks, as people reduce risk exposure before events." U.S. President Donald Trump said on Thursday he believed China wanted to make a trade deal and that the dispute would be fairly short. This comes after Beijing vowed to counter the latest tariffs on $300 billion of Chinese goods but called on the United States to meet […]

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