$SPY, $GLD, $XAU
Gold prices fell Friday as risk appetite was whetted by comments from White House economic adviser Larry Kudlow that the United States is nearing an interim trade pact with China.
- Spot gold (XAU) was down 0.5% at $1,464.17 oz, as of 0754 GMT, but was set to rise about 0.4% this week,
- US gold futures were down 0.6% at 1,464.30 oz
Asian stocks jumped, denting bullion’s safe-haven appeal, tracking a record S&P 500 finish, as hopes revived that the world’s top 2 economies were nearing a phase 1 deal.
Larry Kudlow said Thursday, an agreement could come soon.
There is optimism in the market that the first phase of the trade deal will be signed soon. So, gold and silver prices are falling, prices could fall up to 1,420.
A steady dollar index (.DXY) against a basket of 6 major currencies also weighed on the bullion.
Gold prices have gained more than 14% this year as the on-again, off-again trade spat has roiled financial markets and prompted fears of a global economic slowdown.
A Reuters poll of economists showed a permanent truce is unlikely over the coming year, and, while concerns have eased over a US recession, an economic rebound is also not expected soon.
Risks associated with the political and economical issues like BREXIT, Hong Kong and trade talks are “too great for something not to go wrong,” and these risks will put a floor under gold prices and if something goes really wrong then prices will go higher.
In Hong Kong, anti-government protesters paralysed parts of the financial hub for a 5th day running.
Investors are now awaiting the US retail sales and industrial production data for the previous month, expected later today.
Have a terrific weekend
US-China Trade Deal Hopes “whet risk appetite,” Gold Falls added by HEFFX Australia on
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