Gold Prices Climb Higher Over Worries of Delay in US-China Phase One Trade Deal

Gold is trading steady after turning bullish once again as uncertainties surrounding the US-China trade deal come back to worry markets as latest reports suggest a possible delay in signing of this deal. At the time of writing, GOLD is trading at a little above $1,471.

Trade tensions between the US and China reignited despite promising developments in negotiations over the issue of Hong Kong protests. On Tuesday, the US Senate approved legislations supporting the anti-government protesters in Hong Kong and warned China about ensuring their human rights, clearly rubbing China the wrong way as a result.

This brought back fresh worries of the US-China trade deal getting delayed and increased the safe haven appeal of gold in global markets. Sources and analysts now expect the “phase one” trade deal signing to extend beyond 2019 and into 2020 at the earliest.

Gold is also trading higher on account of geopolitical tensions in Hong Kong as well as in Iran. According to Iranian President Hassan Rouhani, security forces have successfully clamped down on protests against rising fuel prices in the face of US sanctions, driving the US to deploy an aircraft carrier in the Strait of Hormuz region, raising tensions in the Middle East.