Investing.com – Gold prices rose on Friday morning in Asia, as U.S. President Donald Trump dampened market optimism brought by the possibility of renewed trade talks between Washington and Beijing.
Gold futures for December delivery were up 0.2% to $1,210.6 per troy ounce at 12:01PM ET (04:01 GMT) on the Comex division of the New York Mercantile Exchange.
Trump threw cold water on the idea that trade talk initiated by the White House are aimed at de-escalating tensions between the U.S. and China by tweeting that the country “was under no pressure to make a deal with China.”
After Chinese officials welcomed the invitation, the state-owned newspaper China Daily said in an editorial that Beijing will not buckle to U.S. demands in any trade negotiations.
“The Trump administration should not be mistaken that China will surrender to the U.S. demands. It has enough fuel to drive its economy even if a trade war is prolonged.”
The back and forth came after Trump’s threats last Friday on possible tariffs on virtually all Chinese exports. Beijing pledged to retaliate.
In times of uncertainty, the demand for gold increases.
U.S. consumer prices climbed less than expected in August since gains in gasoline and rents were offset by a fall in healthcare and apparel costs, while inflation pressures also appeared to slow. The U.S. central bank is expected to raise benchmark interest rates at its meeting this month.
On the supply side, South African miner Gold Fields Ltd plans to prolong the life of its Cerro Corona gold mine in Peru till 2040 with an investment of at least $240 million.