Investing.com - Gold prices slipped on Thursday in Asia as the U.S. dollar remained supported near two year highs amid heightened Sino-U.S. trade tensions.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.3% at $1,276.8 per ounce by 11:15 PM ET (03:15 GMT).
"Gold has to crack the $1,289 resistance first if it wants to get to $1,300," said Eli Tesfaye, precious metals strategist at RJO Futures in Chicago. "I see more of a trading range of $1,275-$1,289 for now."
Tension between the U.S. and China escalated further today after China’s state-owned newspaper People’s Daily warned the U.S. to not “underestimate China’s ability to strike back.”
“Will rare earths become a counter weapon for China to hit back against the pressure the United States has put on for no reason at all? The answer is no mystery,” the paper said. “Don’t say we didn’t warn you!” it added.
Gold prices have remained subdued even as investors have become increasingly worried over the impact of trad tensions on global growth. Instead, the U.S. dollar has benefited from the resulting flight to safety. A stronger dollar generally weighs on the price of dollar-denominated gold.