Gold Strengthens on Rising US-China Trade Tensions
Arslan Butt • 1 min read
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.