Gold prices were marginally higher Monday morning in Asia as new tariffs kicked in in both the U.S. and China, marking the next step in the ongoing trade dispute between the two largest economies in the world.
Gold Futures traded on the Comex division of the New York Mercantile Exchange were up 0.26% to $1,533.40 a troy ounce by 10:55 PM ET (02:55 GMT).
Over the weekend, tariffs of 15% on USD110 billion worth of Chinese imports took effect as did tariffs of between 5% to 10% on a range of U.S. goods.
Still, continued talks between the U.S. and China appear to be on track for September with several months before more tariffs on both sides take effect in December.
Meanwhile, China’s economy remained under pressure. The official manufacturer’s Purchasing Managers’ Index (PMI) for August, released on Saturday, came in lower than expected at 49.5 down from 49.7 in July.
However, the Caixin China General Manufacturing PMI, released Monday morning, recorded an increase to 50.4 in August up from 49.9 in July. In both cases, a reading above 50 signals expansion.
Gains on gold remained subdued as the US dollar gained recovered some lost ground over the past few days. During Monday morning in Asia, the US Dollar Index Futures that tracks the greenback against a basket of currencies was marginally lower, down 0.08% to 98.83.
