Gold Dips Lower, on Track for a Weekly Loss
Arslan Butt • 1 min read
Early on Friday, gold prices are trading lower over optimism in the markets that US and China could resume their negotiations towards a trade agreement. At the time of writing, GOLD is trading a little above $1,524.
The safe haven appeal of gold has diminished slightly after China confirmed on Thursday that both countries’ trade teams will meet in September, as previously agreed. This latest positive development has the precious metal on track for a slight weekly loss of 0.1% in what has otherwise been a strong month, where gold prices have gained 7.9% so far.
On Thursday, the Chinese commerce ministry confirmed that US and China were in discussions regarding in-person meetings in September, but for that to happen, the US government has to put off the latest round of tariff hikes. Trump had announced an additional 5% tariffs on $300 billion worth of Chinese imports starting from September 1 and December 15.
Gold prices can continue to exhibit volatility over the weekend as China releases its official manufacturing survey data. At the time of heightened trade tensions, this will be an important measure of the health of the Chinese economy.