Gold prices steadied as the dollar eased following news that China would retaliate against a new round of U.S. tariffs on its goods.
U.S. President Donald Trump imposed 10 percent tariffs on about $200 billion worth of Chinese imports and warned of more tariffs if China retaliated.
Traders are increasing bets the Federal Reserve will raise U.S. short-term interest rates into 2019 as the jobs market tightens.
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