Investing.com -- Gold prices drifted sideways in narrow ranges on Tuesday as the market remained in a holding pattern in the absence of major market-moving news.
Risk appetite had been supported overnight by news that the U.S. will extend for another 90 days selected exemptions to the ban on U.S. companies selling to Chinese telecoms provider Huawei, an issue that has become central to the broader progress of trade negotiations between the two. That lifted stocks and pushed up bond yields, but hardly dented prices for bullion.
There was little readiness to make aggressive new bets while the threat of a forceful crackdown on protests in Hong Kong persists. Violent suppression of the protests would likely trigger a hawkish U.S. reaction, at least from Congress. That would make any broader resolution of the trade talks harder for the Trump administration.
By 8:35 AM ET (1335 GMT), gold futures for delivery on the Comex exchange were down 0.2% at $1,468.80 a troy ounce, having stayed in a range of $11 all day so far.
Spot gold was down 0.2% at $1,468.41.
European bond yields and stocks in particular moved higher, with U.K. assets the biggest beneficiary. The U.K. has been one of the biggest sources of portfolio demand for gold this year, with many investors seeking a hedge against Brexit-related uncertainty against a backdrop of sterling weakness.
However, recent election polls have shown a rising probability of the Conservative Party winning a majority in December’s general election have reduced the Brexit discount on sterling, while the main parties’ election promises imply a big relaxation of fiscal policy, which could drive U.K. bond yields higher.
Elsewhere, silver and platinum both found buyers after a rough week. Silver futures rose 0.7% to a one-week high of $17.12 an ounce, while platinum futures rose 1.5% to $908.70, also their highest in over a week.