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Gold Price Fall Despite Doubts Over Partial Trade Deal

Gold price dropped in Asia despite doubts over phase one on the trade agreement between the U.S. and China.

December delivery for Gold Futures for New York’s COMEX traded 0.2% lower to $1,470.75.

U.S. President Trump possibly signs a bill that supports Hong Kong protesters, according to Bloomberg, citing a source familiar to it.

China’s foreign ministry spokesman called the conclusion a blatant interference in China’s internal affairs. Also, he added the United States would face negative consequences if it continues.

Trump is now a problem because signing the bill could imperil a long-awaited trade agreement with Beijing. The deal was initially expected to be signed in Chile at a summit scheduled for mid-November. Contrarily, the deadline left in oblivion after the cancellation of the conference. According to the Reuter, the two countries might not have a partial trade agreement this year.

The U.S. Federal Reserve’s meeting minutes for October also received some focus.

The central bank said the position of the policy possibly would remain where it is. This is as long as incoming data about the company did not result in a material reassessment of the economic vision.

However, they see the downside risks around the economic outlook as elevated, further emphasizing the instance for a rate cut, including gold at the October meeting. They cited decreased business investment and exports resulting from weakness in world growth and high uncertainty regarding the trade progress.

The disturbance for gold is not yet dead, according to TD Securities.

 

Gold Price Remained Amid Trump Uncertainty on Trade Deal

The gold market steadied for a second straight day after U.S. President Trump’s continuous back-and-forth on his proposed trade agreement with China. The Federal Reserve’s explanation that it might happen with rate cuts, and that is another factor for the gold bull’s uncertainty.

Both bullion and gold futures hardly moved as traders tried to make sense of U.S. President’s latest comments. He wants a deal with China even as he renewed warning to raise tariffs against Beijing if the phase one agreement is not signed by Dec. 14.

Meanwhile, the Fed’s meeting minutes for October showed a rising divided central bank on rate policy down the road. Also, a rate cut in December seemed to have minimal prospects.

New York’s COMEX December delivery for gold future decreased just a dime at $1,474.20 an ounce. Also, spot gold, which tracks live trades in bullion, increased by 14 cents at $1,472.42.

Beijing and Washington have been working on phase on an agreement to end their 17-month truce, with little improvement forecast so far. The U.S. President Trump said if they don’t make a deal with China, he will increase the tariffs even higher. The stock hit a line of all-time highs lately on White House assurances that a trade agreement would be signed in just a matter of time.

TD Securities said in its daily precious metals vision that the mood in U.S.-China trade negotiations is helping gold prices firm. He also added that the gold bug is not dead. He concluded that the yellow metal will give optionality to the possibility of further easing. This is while allowing money managers to benefit from a trend of lower real rates. Also, TD Securities still anticipates the Fed to cut rates twice more in 2020.



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