2019.05.2109:10:00UTC+00Gold Edges Lower As Equities, Dollar Rise

Gold prices are edging lower Tuesday morning, as traders look to pick up riskier assets such as equities amid slightly easing concerns about U.S.-China trade war after the U.S. eased some restrictions on Chinese telecom major Huawei.

The dollar's modest uptick is also weighing on the yellow metal.

The dollar index, which advanced to 98.13, is currently up 0.1% at 98.03.

Gold futures for June are down $6.40, or 0.5%, at $1,270.90 an ounce.

Silver futures for July are declining $0.045, or 0.31%, at $14.400 an ounce, while Copper futures for July are down marginally at $2.7230 per pound.

European stocks and U.S. stock futures rose today, reacting to news that the U.S. Commerce Department has temporarily eased trade restrictions on Chinese tech giant Huawei.

The Commerce Department issued a temporary license authorizing specific, limited engagement in transactions involving the export, re-export, and transfer of items to Huawei for 90 days.

Commerce Secretary Wilbur Ross said the temporary reprieve grants "operators time to make other arrangements and the Department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services."

"In short, this license will allow operations to continue for existing Huawei mobile phone users and rural broadband networks," he added.

The move by the Trump administration led U.S. tech giant Google to reverse an earlier decision and announce it will continue to work with Huawei over the next 90 days.

On the economic front, data on existing home sales in the U.S. for the month of April is due this morning.