MTECHTIPS;-Gold prices edge lower as U.S.-EU trade tension abates

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MTECHTIPS;-Gold prices edge lower as U.S.-EU trade tension abates

MTECHTIPS-Gold edged lower on Thursday under pressure from a stronger dollar and in response to an easing of trade tensions after the United States agreed to refrain from imposing tariffs on cars from the European Union. The two sides will also begin talks to cut other trade barriers, they announced on Wednesday following a meeting at the White House. Gold usually loses ground to riskier assets such as stocks when global financial and political worries fade. Spot gold slipped 0.4 percent to $1,228.33 per ounce by 1220 GMT, after it rose 0.6 percent on Wednesday. Earlier in the session, the metal hit $1,235.16, its highest in more than a week. U.S. gold futures for August delivery were 0.3 percent lower at $1,228.10 an ounce. “The rise is partially to do with the news that Trump and the EU called a ceasefire on the trade war and a halt on auto tariffs,” said Natixis precious metals analyst Bernard  “But gold has been dropping since April so there is a bigger story behind this fall rather than just the EU-US story at the moment.” Gold is currently trading about 10 percent off its April high due to pressure from a stronger dollar, which has risen around 5 percent in that time

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