Previously in the news, it was recalled that US-China top officials had a video conferencing call in which observers termed as a constructive one. Many saw this as a dim light in a tunnel although the final say depended on president trump.
Investors entered the week been hopeful even though US threat on slapping more tariffs on Chinese goods in case of a failed pact stands.
On Tuesday, in a twist of events, President Trump reiterated that the United States’ stance on increasing tariffs on Chinese goods in the event of a failed pact still holds steady thereby dousing the hopes hitherto lit by previous reports.
The trade war which had spanned for 16 months created fears of a global recession; therefore the President’s threat might stall the progress of the trade talks. Analysts also predict that the recent bill passed by the US Congress in support of the protest in Hong Kong might also be a stumbling block to the progress made so far.
Apart from the bill passed to support human rights in Hong Kong, the U.S. Congress also passed another bill to stop the export of some ammunition to Hong Kong police. This didn’t augur well with China who taunted the US to stop being a watchdog.
Gold Trends Higher
Spot gold edged higher to $1,473.98 per ounce early this morning with a market gain of 0.1% while U.S. gold futures held steady at $1,474.40 per ounce.
Gold is yet to consolidate its gains given the awaited minutes from Federal Reserve which is due out later on today. There are speculations that the Fed’s decision of holding steady its interest rate cut might undermine the precious metal.
The Federal Reserve had embarked on a three-time interest rate cutting this year while its decision to hold steady was applauded by a top Federal Reserve official to be supportive of the US economy.
On the Asian side, the share market took a downturn from reports on the trade talks while the reverse was seen in the global equities market.
Though Gold had taken a downtrend in the equities market, it remains supported by the geopolitical stance.
A top analyst forecasted that Spot gold may climb up to $1,480 even reaching $1,485 per ounce.
Other precious metals such as silver held steady at $17.14 per ounce, while palladium stood at -0.1% to $1,760.80 per ounce.
Platinum also stands at – 0.6% to $904.52 per ounce.
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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.