WASHINGTON (dpa-AFX) - Gold prices drifted lower on Thursday as bonds rallied and the U.S. dollar edged toward a one-week high amid fresh concerns over U.S.-China trade negotiations.
Spot gold slipped 0.2 percent to $1,277.15 per ounce, while U.S. gold futures dropped 0.4 percent to $1,276.15 an ounce.
A senior Chinese diplomat said today that provoking trade disputes is 'naked economic terrorism', ramping up the rhetoric against the United States.
After a warning that Beijing could squeeze its supply of rare earth elements to hit the United States, Chinese state media has now sent an ominously worded warning to Washington: 'Don't say we didn't warn you.'
Elsewhere in Europe, the European Commission wrote on Wednesday to the Italian government asking it to explain its lack of progress in reducing debt.
Italy's populist government is accused of exposing the bloc to financial problems by flouting budget discipline and reversing unpopular economic reforms.
On the Brexit front, Bank of England Deputy Governor Dave Ramsden said a Brexit outcome of no deal and no transition is unarguably the biggest risk to the U.K. economy and financial stability.
This would have large negative economic effects, he said at the Inverness Chamber of Commerce on Thursday.
Copyright RTT News/dpa-AFX
© 2019 AFX News
