Yahoo Finance Price of Gold Fundamental Daily Forecast – Demand Up as Trump Says He May Wait to Strike China Trade Deal
Gold futures are trading sharply higher on Tuesday in reaction to a plunge in demand for risky assets, and a drop in U.S. Treasury yields. Investors are seeking protection in Treasurys which is driving down yields. The drop in yields is making the U.S. Dollar a less-desirable asset, helping to boost interest in dollar-denominated gold.
At 14:22 GMT, February Comex gold is trading $1483.30, up $14.10 or +0.96%.
Trump May Wait on Trade Deal
Gold prices jumped as U.S. stock index futures slid on Tuesday after President Donald Trump suggested he may want to delay a trade deal with China until after the 2020 presidential election.
“In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right,” Trump told reporters earlier on Tuesday. When asked if he had a deal deadline, he added: “I have no deadline, no … In some ways, I think it is better to wait until after the election if you want to know the truth.”
Trump Ratchets Up Trade Tensions
Trump on Monday announced tariffs on U.S. steel and aluminum imports from Brazil and Argentina “effective immediately”, opening new fronts in his trade war.
Weak U.S. Manufacturing Data Propping Up Prices
Weak U.S. Manufacturing data on Monday dented some optimism over global economic growth after China’s factory activity unexpectedly expanded at the quickest pace in almost three years in November.
Daily Forecast
Tuesday’s reaction to President Trump’s comments about the trade deal is nothing new. The timing of his comments is the hard part. Today, we’re going through the basic, “risk-off is bullish for gold”, scenario.
This article was originally posted on FX Empire
