Gold Trades Steady as US and China Get Ready to Sign Phase One Trade Deal
Gold prices have steadied on Thursday and are recovering over a weakening in the dollar following optimistic reports of the US and China signing the phase one trade deal soon. At the time of writing, GOLD is trading at a little above $1,520.
Although an improvement in the market sentiment in conventionally supposed to drive down the safe haven appeal of gold and send its prices lower, the precious metal has been trading bullish as the US dollar slides lower. The greenback has been weakening in recent weeks since the trade deal was announced as traders switch to riskier currencies and assets instead.
After witnessing the strongest annual gain in 2019 in nearly a decade, gold continues to trade bullish as it becomes more attractive for holders of other currencies to invest in as the dollar weakens. The dollar shares a negative correlation with gold, and remains under some pressure over expectations of better economic growth in the US economy this year as a result of receding trade tensions.
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