Gold Prices Slip Amid Upbeat Trade News

Date | 27-11-2019 - 02:50 PM Article Type | Commodities Region | World - Prices of the safe-haven gold traded modestly lower on Wednesday in Asia amid upbeat trade news.

Gold Futures slipped 0.1% to $1,466.05 by 1:20 AM ET (05:20 GMT). The fall came as global risk appetite improved on the back of reports that the top trade negotiators from the U.S. and China held a telephone conversation on Monday. They had “reached a consensus on properly resolving latest issues.,” according to press in China.

The Ministry of Commerce said today that the two sides had another phone call on Tuesday to discuss how to “resolve core issues.”

However, losses of the yellow metal were limited as traders remained cautious over whether a trade deal could truly be achieved in the near future.

Each time the three officials have spoken over the past month, markets have gotten their hopes up that the phase one was a done deal, only to realize later it wasn’t.

Meanwhile, U.S. President Donald Trump said overnight that Washington and Beijing are in the “final throes of a very important deal.”

However, he also reiterated Washington's support for protesters in Hong Kong, a sensitive subject that could potentially anger China.

“The main influencer for gold is still safe-haven sentiment tied to trade talks,” said Eric Scoles, precious metals strategist at RJO Futures in Chicago.

“The trade talks have been somewhat optimistic lately, but overall quiet this week, and the market is likely to remain somewhat neutral with it being a holiday week in the U.S.,” Scoles said. “As of right now, I think gold needs some big headlines to set this market moving one way or the other.”

Author: PPS