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Gold steadies as trade optimism dims on Huawei sanctions

May 16, 2019 00:00:00

BENGALURU, May 16 (Reuters): Gold steadied on Thursday, consolidating in a tight range below the key $1,300 pivot, as Washington slapped sanctions on Chinese telecoms giant Huawei, souring optimism for a thaw in U.S-China trade tensions.

Spot gold was nearly unchanged at $1,298.12 per ounce at 0739 GMT, moving in a narrow range of about $4.0.

US gold futures were also steady at $1,298.10 an ounce.

"There are still a lot of underlying tensions (surrounding US-China trade relations) so that might be supportive for gold," said John Sharma, economist at National Australia Bank.

While gold's gains may be limited by expectations of talks between the US and China, the metal would still hover in the $1,280-$1,310 range, Sharma added.

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