Gold Prices Unchanged As Markets Await Trump’s Speech

There was little movement in the prices of gold today as investors wait for clues from U.S. President Donald Trump’s speech on developments in the trade negotiations with China later today.

Gold

There was little movement in the prices of gold today as investors wait for clues from U.S. President Donald Trump’s speech on developments in the trade negotiations with China later today.

U.S. gold futures were flat at $1,457 an ounce and spot prices were unchanged at $1,456.01 an ounce.

The markets are monitoring what Trump will say about the first phase of the U.S.-China trade talks. It was previously reported that the two parties have agreed to reduce tariffs on each other’s products, but Trump denied it last weekend.

ABC Bullion global general manager Nicholas Frappell said any development in the U.S.-China trade dispute or any issue related to inflation will affect the prices of gold. He predicted that the yellow metal is likely to have a resistance pricing level of $1,488 an ounce.

Charles Evans, president of the Federal Reserve Bank of Chicago, said last week that the American economy is in good condition. However, interest rates policy will significantly be influenced by the inflation rate.

Meanwhile, British Prime Minister Boris Johnson got a major boost for next month’s election. Brexit Party leader Nigel Farage offered a truce to prevent the Brexit opponents from taking control of the next parliament. Farage said he would not field in candidates for the parliamentary seats won by Johnson’s party in 2017.

The Brexit uncertainty and the U.S.-China trade war have both significantly affected the financial markets and raised gold prices by already 13% this year.

In Hong Kong, the pro-democracy protests escalated and provided some support for the precious metal. A protester was critically wounded by being shot by the police and another man was set on fire. These events promoted Hong Kong Chief Executive Carrie Lam to label the protesters as “enemies of the people.”

The Hong Kong incidents and the uncertainty in the U.S.-China trade negotiations weighed on the Asian stock markets and slightly pushed interest in safe-haven bonds.

 

Source: PRECIOUS-Gold flat as investors await cues from Trump speech on trade war