Gold Price Weakens as Markets Look Forward to More Tariff Cuts in US-China Trade Deal

London (Nov 8)  Gold prices have edged lower on Friday following rising optimism on the US and China trade deal once again after reports emerged that they were looking to cut more tariffs as part of the upcoming “Phase 1” trade deal. At the time of writing, GOLD is trading at a little above $1,468.

On Thursday, gold weakened by over 1% to trade at its lowest levels in more than a month after the market sentiment was boosted in hopes for removal of more tariffs. This sent global stock markets rallying and diminished the safe haven appeal of the precious metal.

The weakness in gold continues even though there is still no word on when the trade deal is likely to be signed. However, the removal of tariffs could begin before the end of 2019, which could serve to undo some of the economic weakness driven by the prolonged trade war.

Gold is also trading bearish as the US dollar strengthened on this news. The US dollar soared to trade close to three-week highs after statements regarding removal of tariffs hit the news.

FXLeaders