FUNDAMENTALS
* Spot gold was steady at $3,354.51 an ounce as of 0108 GMT. U.S. gold futures were also steady at $3,378.20. * The U.S. should create the necessary conditions for bilateral relations to get back onto “the right track,” China’s Foreign Minister Wang Yi told the U.S. ambassador to Beijing on Tuesday.
* Meanwhile, the White House signaled that President Donald Trump and Chinese President Xi Jinping might engage in talks later this week to address the trade disagreements.
* The U.S. dollar index fell 0.1%, making greenback-priced bullion less expensive for overseas buyers. * Economic data showed U.S. job openings rose in April, though layoffs surged to their highest level in nine months, hinting at softening labor market conditions.
* Investors are now focused on the May employment report due on Friday. * Federal Reserve officials reiterated their cautious policy stance on Tuesday, citing the risks posed by ongoing trade tensions and economic uncertainty.
* Meanwhile, the Organisation for Economic Cooperation and Development said on Tuesday that global economic growth is slowing more sharply than was anticipated a few months ago, as the fallout from the Trump administration’s trade war takes a heavier toll on the U.S. economy.
* In trade developments, the U.S. announced it would forgo doubling steel and aluminum tariffs on Britain.
* Elsewhere, spot silver rose 0.1% to $34.51 an ounce, platinum was down 0.1% to $1,072.86 and palladium shed 0.1% to $1,009.55. DATA/EVENTS (GMT) 0030 Japan JibunBK Comp Op, Svcs PMI Final SA May 0750 France HCOB Services, Composite PMI May 0755 Germany HCOB Services, Composite Final PMI May 0800 EU HCOB Services, Composite Final PMI May 0830 UK S&P Global PMI: Composite – output May 0830 UK Reserve Assets Total May 1345 US S&P Global Comp, Svcs PMI Final May 1400 US ISM N-Mfg PMI May.
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