Gold Edges Lower as China Promises Better IP Protection, Hopes for Interim Trade Deal to be Signed in 2019 Rise

Early on Monday, gold prices have slid to their lowest levels in the past week over cautious optimism of a US-China partial trade deal being signed within this year. At the time of writing, GOLD is trading at a little above $1,461.

Positive developments over the weekend have boosted the risk-on sentiment in global markets, causing Asian shares to edge higher even as the safe haven appeal of gold comes down. Gold is also trading weaker after strong economic data from the US helped strengthen the dollar, which shares a negative correlation with the precious metal.

Two key developments over the weekend have helped improve the market sentiment regarding the US-China trade war: one, assurance from China that it will work towards offering better IP protection, and two, US NSA Robert O’Brien’s recent remarks stating his hopes for the trade deal to be signed within 2019 itself.

However, gold is likely to remain in favor in the near future over escalating protests in Hong Kong and their possible impact on US-China relations. Markets remain tense over the possibility of US President Donald Trump signing the legislations supporting human rights of anti-government protesters into law, which could upset the fragile equation with China and could potentially have a spillover effect on trade negotiations as well.

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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.
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