Gold Trading Steady After the ECB Meeting, Trade War Optimism Pressures Safe Haven Appeal
Arslan Butt • 1 min read
A day after the ECB meeting, gold is trading mostly unchanged and looks all set for a weekly decline for the third consecutive week. At the time of writing, GOLD is trading at a little above $1,497 as optimism around the upcoming meeting between trade teams of US and China supports a risk-on sentiment in financial markets.
On Thursday, US President Donald Trump hinted at the possibility of signing an interim pact with China in the meantime until a comprehensive trade agreement can be worked out. These comments added to the recent optimism in the markets surrounding the trade war, shortly after both sides put off additional tariff hikes on each other’s imports.
Gold is also trading under pressure over the ongoing protests in Hong Kong. Hong Kong is one of the leading gold markets supplying to China, the world’s leading consumer of the precious metal. Increasing frequency and intensity of protests are making it more challenging to ship physical gold out of Hong Kong, even as China increases its direct imports of the yellow metal amid rising trade uncertainties.