Gold Slides Lower as US Dollar Strengthens; Trade War and Brexit Uncertainties Support
Gold is trading flat on Friday over subdued safe haven appeal for the yellow metal as markets look forward a possible resolution in the US-China trade war. At the time of writing, GOLD is trading at a little above $1,506.
Gold is also trading lower on account of a strengthening in the US dollar, which shares a negative correlation with the precious metal. The US economy is performing better than many other leading economies worldwide, with inflation staying close to the 2% target set by the Fed, boosting the dollar.
On the trade war front, more positive headlines continue to emerge, with China expressing interest in importing more goods from the US if talks progress well. However, gold continues to remain supported over reigning uncertainties surrounding the trade war, which will only get resolved once both sides make some concrete, formal announcement towards resolving their trade dispute.
In addition, the ongoing chaos surrounding Brexit is also keeping gold’s safe haven appeal supported lately. Despite the recent vote deeming a no-deal Brexit illegal, there is still a possibility that PM Boris Johnson could find a way to take Britain out of the EU on October 31 without a deal in place.
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