Gold Trading Steady but Remains Supported Above $1,500 - Forex News by FX Leaders

Gold Trading Steady but Remains Supported Above $1,500

Posted Tuesday, August 27, 2019 by
Arslan Butt • 1 min read

US-China trade tensions witnessed a slight reduction on Monday after Trump reassured the markets that both countries’ trade teams are looking to restart negotiations again. As a result, GOLD prices are trading steady early on Tuesday, holding a little above $1,528 at the time of writing.

After a fresh round of tariff threats by both the US and China late last week, gold had soared to a six-year high on Monday, as uncertainty drove investors towards the safety of the precious metal. However, on Monday, both countries played down Friday’s comments and signaled their interest in negotiating a trade deal.

Earlier on Monday, Chinese Vice Premier Liu He stated China’s position when he remarked that his country was not keen on escalating the trade dispute. Later during the day, Trump expressed his optimism during the G7 summit that China appeared to be sincere about finalizing a trade deal with the US.

However, gold prices continue to remain supported until significant progress is made between the two countries. The trade war, which has lasted for over a year, has put immense pressure on global financial markets, causing several economies to weaken and resulting in leading central banks adopting a more dovish monetary policy.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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