Gold Edges Higher as Market Sentiment Tenses Over Trade War Again
The safe haven appeal is back in markets, causing gold prices to edge higher as hopes for a US-China trade deal anytime soon recede. At the time of writing, GOLD is trading at a little above $1,470, its highest level in over 10 days.
The risk appetite has faded from the markets as the focus goes back to the trade war over reports that China is not keen on signing the trade deal until Trump agrees on the plan to roll back tariffs in a phased manner. The lack of significant updates about progress made in trade talks has also kept markets on edge and helped gold prices rebound.
Tensions between the US and China appear to be on the rise over the issue of the protests in Hong Kong as well. US Secretary of State Mike Pompeo expressed concerns and requested China to honor its liberties and urged the government to lend an ear so protesters’ demands.
Gold is also edging higher in anticipation of the FOMC meeting scheduled for this week after Fed Chair Powell met with President Donald Trump on Monday. Trump has been critical of the Fed’s monetary policy, alleging that its less dovish stance is keeping the US dollar stronger and making it hard for the US to maintain a competitive edge in international trade.
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