Gold Dips Lower, on Track for a Weekly Loss

Arslan Butt•Friday, August 30, 2019•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.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.