Gold Strengthens on Rising US-China Trade Tensions

Gold prices have eased lower after climbing to a one-week high as markets worry about a further delay in a trade deal between US & China

Gold - XAU/USD

Gold prices have eased lower after climbing to a one-week high on Wednesday as markets worry about a further delay in a trade deal between the US and China. At the time of writing, GOLD is trading at a little above $1,508.

Deputy-level trade talks between the US and China on Monday and Tuesday made no remarkable progress. Following this, the US decided to add more Chinese companies to its trade blacklist and even impose Visa restrictions on some Chinese officials in protest of ill-treatment of Uighur Muslims in China. This soured the sentiment in global financial markets and sent the safe haven gold back above the $1,500 level.

Gold has also turned bullish on the back of new job openings in the US falling to an 18-month low during August. Slower job creation and hiring has markets worried about a slowdown in the US economy as the trade war with China and other regions intensify. Business confidence among US manufacturing and services firms has also been impacted lately while concerns of a recession rise once again, further boosting demand for gold.

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.

Related Articles

Comments

0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers