Gold is retreating as a result of pressure on the yuan

Economy and stock exchange

Gold prices fell on Monday as Chinese and US trade tensions dampened the possibility of a deal on the yuan, raising the cost of the yellow metal to buyers in China, the world's biggest consumer..

By 0558 GMT, the spot price of gold was down 0.2% at $ 1238.40 an ounce. US gold futures were down 0.2% at $ 1285.20 an ounce.

The trade war between the world's two largest economies rose on Friday as the United States lifted tariffs on Chinese goods worth 200 billion dollars after US President Donald Trump said China had "broken the agreement" by renouncing earlier pledges. China promised to respond without giving details.

The United States and China appeared to have reached a stalemate in trade negotiations on Sunday as Washington sought promises of concrete changes in Chinese law and Beijing said it would not accept what was damaging its interests..

The Chinese yuan fell in foreign trade to its lowest level in more than four months at 6.896 against the dollar, falling in the latest trading 0.7% at 6.888 to the dollar, weakening the yuan to raise the price of gold for buyers in Asia.

For other precious metals, silver fell 0.4% to $ 14.70 an ounce, while platinum fell 1% to $ 852.

Palladium fell 1.2% to $ 1340 an ounce.

gold (t) yuan (t) gold prices (t) China (t) economy news