The hopes about a de-escalation of the trade war between the two largest economies came to a crunch when United States President, Donald Trump confirmed the fears of investors that the preliminary pact might not happen till 2020.
President Trump while making comments after increasing tariffs on steel and aluminum exports from neighboring countries, Brazil and Argentina made it known that the so much anticipated preliminary pact may hold steady till after the U.S. elections in the latter part of the year 2020.
This is expected as U.S. Commerce Secretary Wilbur Ross had earlier refused all deadlines presented on the preliminary pact with China and also given the Huawei recent attacks.
The US Had Cited Worries of China Backing out in the Trade Talks
Also asides from the two latest bills passed by the US senate to support human rights in Hong Kong and to stop the export of certain ammunitions to Hong Kong police, the Uighur crackdown bill recently passed by the US might stall any progress made in the de-escalation of the 17-month long trade war.
Gold which is a safe-haven metal which is often resorted to in times of political and economic uncertainties had profited by 13% this year as a result of the trade wars.
The risk-on appetite of investors was deflated because of the recent updates from the trade talks which buoyed the safe-haven metal while undermining the dollar and other riskier assets, noted an analyst who spoke on Gold’s recent advance.
In the earlier hours of today, Spot gold rose by 0.1% to trade at $1,478.81 per ounce, while U.S. gold futures ranged at $1,484.60 nearing a 4 week high recorded in the previous trading session.
The dollar, on the other hand, touched down a 4 week low based on the fact that the safe havens weigh on the dollar and the riskier assets.
For other precious metals, palladium fell by 0.2% to trade at $1,851.94 per ounce, barely two days ago; it attained a record-breaking high of $1,861.71. Silver held steady at $17.17, while platinum rose by 0.2% to trade at $911.24 per ounce.
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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.