Gold Trades Steady as Markets Remain Confused About Trade Deal Progress - Forex News by FX Leaders
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Gold Trades Steady as Markets Remain Confused About Trade Deal Progress

Posted Tuesday, December 10, 2019 by
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.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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