Gold Holds Steady at $1,460 as Investors Await the Fed’s Decision, Trade Talks Outcome

This seems to be the season for the safe-havens given the expected events this week which will shape the currency market for the year 2020.

First, The December 15th deadline set by the United States for the signing of a preliminary trade pact in which US president had threatened more tariffs in case of a failed pact.

Secondly, the Federal Reserve decisive meeting on its latest monetary policy due for December 10th-12th. Analysts speculate that with the favorable US payroll stats released last week, the Federal Reserve may hold steady its interest rate.

Last Friday, notable events were the release of the US non-farm payroll stats and also Larry Kudlow’s live interview on CNBC.

Recap from Larry Kudlow’s CNBC Interview
Larry Kudlow who is an advisor on economic policies at the White House had an interview with CNBC last Friday where he spoke extensively on several pertinent matters. On the trade talks, he mentioned that the US stance on its December 15 deadline for the signing of a preliminary pact holds steady. Extra tariffs will be imposed on more than $150 billion Chinese goods in case of a failed pact.

December 15 Deadline
A currency strategist holds the hopes of a last-minute cancellation of tariffs. He said going by past events in the Trump administration, one would not be surprised if by midnight before December 15th, the two countries may strike a deal.

Safe-Havens with Gold in View
Market activity in the early hours of today showed that Gold held steady given the expected events this week.

Spot gold held steady to trade at $1,460 per ounce while U.S. gold futures maintained its price of $1,464.50.

Gold is yet to consolidate its gains following released stats from China and US non-farm payroll figures as it fell by a percent on Friday. An analyst predicts that gold will still be pressured from Friday’s released stats in which SPDR Gold Trust touched down on a 12 week low.

Gold had profited close to 15% this year from the trade tensions and fed’s three-time interest cut.

In a scenario of a failed trade pact and extra tariffs are imposed, the safe-haven metal may rebound into the weekend.