Safe Haven Appeal of Gold Diminishes as US Official Raises Hopes for Trade Deal

Gold prices are declining as the risk appetite in markets was boosted by positive comments surrounding the US-China trade talks. At the time of writing, GOLD is trading at a little above $1,466.

Following positive discussions with China, White House Chief Economic Adviser stated that both sides were getting closer to signing a partial trade deal. This was the first positive comment in several days, especially after Trump raised the tariff threat a few days ago, so markets took it as a significant development and brought down the safe haven appeal of gold.

However, gold prices remain supported over the release of weak economic data from Europe. Although Germany has narrowly missed falling into recession in Q3, manufacturing still remains weak over global trade tensions and weakness in economic growth worldwide. Gold is also in favor as a result of ongoing tensions in Hong Kong where clashes have caused the death of one more person earlier today.