Gold Trading Weaker as Markets Hope for the “Phase 1” Trade Deal to be Signed Soon
Early on Monday, gold prices are trading slightly weaker over rising optimism of the interim trade between the US and China getting signed in November, which could considerably life the mood in global financial markets. At the time of writing, GOLD is trading at a little above $1,511.
On Friday, officials from the US as well as China confirmed progress in trade negotiations and hinted that the “Phase 1” trade deal could be signed within a month. Any improvement in trade tensions helps drive down the safe haven appeal of gold, causing the precious metal to trade bearish.
Gold also slid lower on the release of some reassuring economic data from the US, especially a weaker than expected slowdown in job growth in the US. In addition, hiring also came in stronger than expected for the previous two months in the US. Economic data from China also boosted the sentiment in markets, as the Caixin Manufacturing PMI rose to 51.7 in September from 51.4, indicating higher growth in the manufacturing sector notwithstanding ongoing trade tensions.
Gold is also trading cautiously as markets wait to hear from the new ECB President Christine Lagarde later today. Monday marks her first official speech, and markets will tune in to look for clues on any changes to the monetary policy for the Eurozone.
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals