APEC Trade Chiefs Agree on More Inclusive Trade

APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)
APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)
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APEC Trade Chiefs Agree on More Inclusive Trade

APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)
APEC Ministers Responsible for Trade Meeting Chair Ambassador Katherine Tai delivers concluding remarks during a news conference at the Westin Book Cadillac hotel in Detroit, Michigan on May 26, 2023. (Photo by JEFF KOWALSKY / AFP)

Trade ministers from the Asia Pacific Economic Cooperation (APEC) countries agreed on Friday to promote more inclusive and sustainable trade, but failed to produce a joint statement due to Russia and China's objections to language on Ukraine.

Closing out two days of talks in Detroit, the APEC host, US Trade Representative Katherine Tai, instead issued a chair's statement summarizing the discussions, with an emphasis on inclusiveness, fighting climate change and sustainability.

"We reaffirm our determination to deliver a free, open, fair, non-discriminatory, transparent, inclusive and predictable trade and investment environment," the statement read.

According to Reuters, the group reaffirmed its commitment to the rules-based multilateral trading system with the World Trade Organization at
its core. "We will continue to work to ensure a level playing field to foster a favorable trade and investment environment and reaffirm our commitment to keep markets open and to address supply chain disruptions," it said.

APEC leaders last November in Bangkok approved language stating that "most members" strongly condemned the war in Ukraine and the resulting human suffering and economic impact.

But at the meeting in Detroit, China and Russia objected to including the language, leaving it to Tai's chair's statement, which noted there were differing views and that "APEC is not the forum to resolve security issues."

Tai told a news conference that she hoped APEC leaders at a November summit in San Francisco would be able to produce a joint statement.

Tai used the Detroit meeting as a venue for pushing the Biden administration's vision of a "worker-centered" trade policy to a broader international audience. She said she chose Detroit to showcase its history as a city hit hard by aggressive trade liberalization, but which has seen a rebirth and shift to new green transportation technology.

"I'm confident that APEC's reputation as an incubator of ideas and a catalyst for cooperation can also benefit our work in driving a race to the top for workers throughout the region," she said.



Gold Hits Four-week Peak on Safe-haven Demand

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold Hits Four-week Peak on Safe-haven Demand

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices rose to a near four-week high on Thursday, supported by safe-haven demand, while investors weighed how US President-elect Donald Trump's policies would impact the economy and inflation.

Spot gold inched up 0.4% to $2,672.18 per ounce, as of 0918 a.m. ET (1418 GMT). US gold futures rose 0.7% to $2,691.80.

"Safe-haven demand is modestly supporting gold, offsetting downside pressure coming from a stronger dollar and higher rates," UBS analyst Giovanni Staunovo said.

The dollar index hovered near a one-week high, making gold less appealing for holders of other currencies, while the benchmark 10-year Treasury yield stayed near eight-month peaks, Reuters reported.

"Market uncertainty is likely to persist with the upcoming inauguration of Donald Trump as the next US president," Staunovo said.

Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing sources familiar with the matter.

Trump will take office on Jan. 20 and his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation, is likely to perform well.

Investors' focus now shifts to Friday's US nonfarm payrolls due at 08:30 a.m. ET for further clarity on the Federal Reserve's interest rate path.

Non-farm payrolls likely rose by 160,000 jobs in December after surging by 227,000 in November, a Reuters survey showed.

Gold hit a near four-week high on Wednesday after a weaker-than-expected US private employment report hinted that the Fed may be less cautious about easing rates this year.

However, minutes of the Fed's December policy meeting showed officials' concern that Trump's proposed tariffs and immigration policies may prolong the fight against rising prices.

High rates reduce the non-yielding asset's appeal.

The World Gold Council on Wednesday said physically-backed gold exchange-traded funds registered their first inflow in four years.

Spot silver rose 0.7% to $30.32 per ounce, platinum fell 0.8% to $948.55 and palladium shed 1.4% to $915.75.