Gold Prices Steady as Traders Await Further Trade News
Gold prices remained steady in Asia as traders waited for more U.S.-China trade deal news.
December delivery for Gold Futures rose up 0.1% to $1,465.85.
Spot gold, which tracks live trades in bullion, was down $9.55, or 0.7%, at $1,464.65.
The fate of the forthcoming “phase one” trade deal was in focus after Washington sent two bills. The bills are proposals in supporting the protesters in Hong Kong. It sent a warning to China on its human rights policies.
Despite the reports, Chinese President Xi Jinping said that China still wants to have a first trade deal with the United States.
President Xi said he wants to work for a “phase one” deal based on mutual respect and quality. Also, China has been working actively to try not to have a war. China did not initiate the war, and that is not something they want.
However, President Xi said they are not afraid to fight back if necessary.
Meanwhile, the Wall Street Journal inferred that Beijing invited United States negotiators for a new round of talks.
While not a directional driver, a Gold Man Sachs forecast received some focus as it foresees China’s economy would increase by 5.8% in 2020. It will be helped by tight consumer spending and easing trade tensions.
According to the report, both sides have an incentive to deal aggressively, and each seems to perceive it has the advantage. The next few weeks as the critical phase, before the scheduled Dec. 15 tariff implementation.
Gold Prices Fall as U.S.-China Trade Hits Market Again
Gold prices keep yanking around by on-again, off-again United States, and China talks. Yesterday, gold prices managed to remain in two recent sessions.
New York’s COMEX for December delivery of Gold Futures decreased by $10.60, 0r 0.7%, at $1,463.60 per ounce. Sliding a little, it closed virtually unchanged in the recent session.
The Chinese commerce ministry said China would aim to reach a first trade deal with the United States. Both sides keep communication channels open.
President Trump threatens to pile another round of tariffs on Chinese products starting Dec. 15. Also, Beijing invited U.S. trade negotiators for a new series of face-to-face talks.
However, the global investment and the U.S. currency markets are still worried about the outcome of the looming “phase one” trade deal.
Gold prices came pressured after the release of the Fed’s minutes from its October meeting. It showed central bankers at the Fed’s FOMC against a fourth straight rate cut in December.
TD Securities said gold continues to trade near $1,470/oz. The Hong Kong bill adds a structure of worry to the trade negotiations, while on the other side, the Federal Open Market Committee minutes confirmed a Fed on pause for the time being.
Moreover, President Donald Trump resumes his pressure on the Federal Reserve to cut interest rates further. Come gold bugs expecting that the White House could be looking for reassurances that the Fed is ready to provide a backstop. It will be used if the government escalates the trade war that is happening.
