
Gold Slips to Two-Week Lows Over Positive Developments in US-China Trade War
Gold prices have slid lower and are trading near two-week lows on rising hopes that the US and China getting ready to sign a phase one trade deal soon. At the time of writing, GOLD is trading at a little above $1,454.
Considerable uncertainty surrounding the progress in trade talks was put to rest when Global Times, a tabloid under the Communist Party’s People’s Daily, tweeted that China and the US were nearing consensus on the partial trade deal. Gold was trading bearish on Monday after China confirmed over the weekend that it planned to step up its efforts to improve IP protection, a key contention in the trade war.
The improvement in the market sentiment on the back of optimistic news reports sent the dollar higher and weakened the safe haven appeal of gold further. There is also some hope that the US may be getting ready to ratify the USMCA trade agreement after a final review, as confirmed by US House of Representatives Speaker Nancy Pelosi, which is likely to put more pressure on gold prices.