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Gold Dips Ahead of Trump’s Moves on Iran, China

16/07/2019 19:06:39 Commodities
By Barani Krishnan The U.S. appears ready to negotiate with Iran while walking away from talks with China. How these developments factor for gold will be clear in coming days. But for now, prices of the yellow metal are taking a dip.Spot gold, reflective of trades in bullion, traded at $1,405.65 per ounce by 2:24 PM ET (18:24 GMT), down $8.36, or 0.6%, on the day.Gold futures for August delivery, traded on the Comex division of the New York Mercantile Exchange, settled down $2.30, or 0.2%, at $1,411.20.U.S. Secretary of State Mike Pompeo claimed that "for the first time" on Tuesday Iranian officials "are ready to negotiate on their missile program" after President Donald Trump apparently told a cabinet meeting that his administration had made progress with Tehran and did not wish war or regime change there.Trump, meanwhile, said the United States has a long way to go to conclude a trade deal with China, but could impose tariffs on an additional $325 billion worth of Chinese goods if needed.Speaking at a Cabinet meeting at the White House, the president said China was supposed to be buying U.S. farm products and his administration was watching to see if Beijing would do so.Gold prices also turned lower on Tuesday after a strong retail sales reading sparked buying interest in the U.S. dollar and pushed Treasury yields higher. Retail sales gained 0.4% in June, outpacing consensus forecasts for a meager 0.1% advance.A later flat reading of U.S. industrial production in June, missing even the forecast for weak growth of 0.1%, briefly pulled gold back from intraday lows in a short-lived recovery.