Gold Prices Eases Amid Concerns Over HK, China-U.S. Affairs
Gold prices bounced as hopes of a U.S.-China trade deal lowered again after U.S. President Trump signed the bill in support of Hong Kong protestors.
On Wednesday, President Trump interim the Hong Kong Human Rights and Democracy Act into Law. Thus, the State Department would need to certify once a year that Hong Kong is adequately autonomous to keep its U.S. trading consideration. He also signed legislation banning the sale of munitions such as tear gas and rubber bullets to Hong Kong police.
In response to it, Beijing warned that it would take active countermeasures.
China released a statement hours after the signing of President Trump to the bills. It said that the U.S. should not underestimate China’s capabilities and strategies to defend its sovereignty, safety, growth, and rights.
The forecast doubts whether the U.S. and China will make it to the trade deal that was reportedly close to being signed rose. President Donald Trump says earlier this week the U.S. was in the final touches of a trade agreement with China. Also, China’s commerce ministry told Vice Premier that the U.S. Trade Representative and Treasury Secretary talked over the phone on issues to the initial deal.
Chinese and Hong Kong stocks traded below than expected on Thursday, while yellow metal traded a bit higher.
The U.S. Gold Futures rose up 0.2% to $1,462.95.
Gold Prices Down, Caught in Trump’s ‘Final Throes’ on Trade Deal
The trade war updates are getting more colorful by the day. President Donald Trump’s comment that the United States was in the final touches of a trade deal with China gave another knock to gold on Wednesday. Also, some investors saw the need to hedge amid a rise in risk-taking.
Both bullion and gold futures dropped after the recent day’s increase as stocks on Wall Street climbed to record highs after their open.
New York’s COMEX for February delivery of Gold futures fell $6.60, or 0.4%, at $1,460.80 per ounce. The agreement declined $1,456.60 in the recent session before recovering, which is considered to be a bottom since Nov. 8.
Spot gold price moved down $6.04, or 0.4%, to $1,455.16. This yellow metal tracks live trades in bullion.
COMEX volumes in gold were also lighter than usual. It is with fewer traders on their desks or taking positions actively ahead of Thursday’s Thanksgiving Day.
RBC Wealth Management’s precious metal analyst said gold is pulling back today, trading more like a currency, as it awaits a break on the China-U.S. tariff news.
Both bullion and gold futures jumped from two weeks low on Tuesday. It took in their stride when China’s commerce ministry told Vice Premier He had discussions over the phone again with U.S. Trade Representative and Treasury Secretary. They spoke about the issues related to the United States and China phase one trade deal.
Each time the three officials talked over the past month, the markets got their hopes up, anticipating that the phase one was a deal considered done. Contrarily, because of the news updates regarding Hong Kong, expectations were then again offset.
