Gold Falls After Donald Trump Said He Is Close To a Trade Agreement With China NNDC | Markets

Updated on 11/27/2019 at 08:04

Gold prices fell slightly on Wednesday, after US President Donald Trump said he is close to closing an interim trade agreement with China, which boosted demand for more risky assets.

At 0948 GMT, the price of spot gold lost 0.17%, to US $ 1,458,687 an ounce, after touching a minimum of two weeks at US $ 1,450.30 on the eve. Gold futures in the United States were down 0.12%, to US $ 1,458.68.

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On Tuesday, Trump said that Washington is in the “final part” of a pact that would deactivate a dispute with Beijing that lasts already 16 months.

"Both the United States and China are softening their stance and there could be an interim agreement … so people are opting for more risky assets and gold is losing its appeal," said Hitesh Jain, vice president of Yes Securities.

Asian stocks rose after Wall Street hit record highs driven by positive trade news, while the dollar rose.

However, "at this point, the markets will not offer any significant response in terms of long-term follow-up unless any tangible development (on the commercial front) is in black on white," said Ilya Spivak, senior currency strategist in DailyFx.

On the Chinese industrial front, a report showed that firm profits fell in October at their fastest pace in eight months. These figures were known after another report indicated that consumer confidence in the United States receded for the fourth consecutive month in November.

In other precious metals, silver was down 0.2%, to US $ 17.04 an ounce; palladium yielded 0.5%, to US $ 1,801; and platinum lost 0.5%, to US $ 902.35.

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