Gold Declines After Trump Announced near Trade Agreement

12 December 2019 | Updated: 12 December 2019

On Thursday, after US President Donald Trump announced that Washington was close to a trade agreement with China, crushing the intrigue of safe-haven metal, gold plunged from more than a month’s peak.

The record surge in rare palladium, meanwhile, gave no indications of decreasing.

Spot gold plunged 0.5% to $ 1,467.04 an ounce. Values reached their highest level since November 7, to $ 1,486.80 before the session. Gold futures in the US are down 0.3% to $ 1,471.40.

Trump stated the US is “exceptionally near” to agreeing with China, keeping global stocks up to a record high and taking off some of the underlying gold rally caused by trade vulnerabilities before the turn-off time on December 15, when the new US Tax on Chinese goods takes off.

The President of the United States wrote a tweet, bolstering bids for risk appetite with capital flowing to equities. The problem with gold is that when everything else looks great, there is a less motivating force to turn into gold, which we saw, ”said Bart Melek, head of commodity strategies at TD Securities.

Besides, on the screen of speculators there stay British elections that would prepare for Brexit under Prime Minister Boris Johnson or push Britain to another referendum, which could finally hinder the choice to leave the European Union.

Experts believe that while significant assessments of public opinion recommend Johnson to defeat his rival, any surprise may add extra help to the bullion.

Palladium, in the interim, rose to a new unsurpassed high of $ 1944 per session, up 1.2% to $ 1933.73 an ounce.

The metal, which was due for the fifteenth consecutive increase, exceeded $ 1,900 initially on Tuesday when the mines of a major producer in South Africa closed after a flood that caused major power outages.

Palladium was one of the stars of metal, but overall the commodity market for the year, “said David Meger, director of metals trading at High Ridge Futures.

Just a power outage fulfills more supply requirements for what is currently a solidly secured market with solid demand.

The cost of platinum was minimally altered at 938.80 dollars per ounce since silver fell 0.2% to 16.82 dollars.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.