Gold prices edged up on Wednesday after falling as much as 1 percent in the previous session, but Sino-U.S. trade tensions continued to drag on the precious metal. Spot gold was up 0.1 percent at $1,202.46 an ounce. Prices hit their highest since Aug. 10 at $1,214.28 on Tuesday, but fell as much as 1 percent later in the session. U.S. gold futures were down 0.5 percent at $1,208.90 an ounce on Wednesday. U.S. and Chinese officials ended two days of talks last week with no major breakthrough as their trade war escalated with activation of another round of duelling tariffs. The dollar, which had risen recently on safe-haven buying from investors nervous about the trade dispute and U.S. interest rate hikes, slipped to four-week lows on Tuesday after a trade deal between U.S. and Mexico.
London copper drifted lower on Wednesday as the dollar recovered from a four-week trough and investors exercised caution with no resolution in sight for an escalating U.S.-China trade dispute. Three-month copper on the London Metal Exchange was down 0.4 percent at $6,124 a tonne, retreating from a two-week peak of $6,167 reached on Tuesday. On the Shanghai Futures Exchange, the most-traded October copper rose 0.6 percent to 48,920 yuan ($7,117) a tonne, tracking overnight gains in London.
Oil markets were stable on Wednesday, buoyed by falling supplies from Iran ahead of U.S. sanctions but held in check by rising production outside the Organization of the Petroleum Exporting Countries. International Brent crude oil futures LCOc1 were at $76 per barrel, up 5 cents from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were up 6 cents at $68.59 a barrel. Crude prices have been supported by the prospect of U.S. sanctions against Iran, which will start to target its oil industry from November. Bowing to pressure from Washington, many crude buyers have already reduced orders from OPEC’s third-biggest producer.