Gold Trades Steady as Markets Remain Confused About Trade Deal Progress
Arslan Butt • 1 min read
Early on Tuesday, gold prices are trading steady as markets wait to hear from the FOMC later this week, even as lack of updates on the US-China trade war keep markets guessing about when a trade deal would be signed. At the time of writing, GOLD is trading at a little above $1,460.
On Monday, there were some more reassuring comments from both sides regarding progress being made towards the phase one trade deal. While China expressed hope for a trade deal with the US soon, US President Donald Trump also remarked that discussions were going well. These comments kept the US dollar supported even as demand for safe havens like gold and the Japanese yen also remain strong amid heightened uncertainty.
Gold traders will also turn their focus towards the Fed as its policy meeting starts later today. Meanwhile, the new ECB President Christine Lagarde will also conduct her first policy meeting later this week, which should also have some impact on the precious metal in the coming days.
According to forecasts by Goldman Sachs, the safe haven appeal of gold is expected to remain strong over the next 12 months over continued uncertainty surrounding the trade war and threat of economic recession.