Gold prices is declining after positive developments in US-Chinese trade talks

Last Updated on August 25, 2020

Gold prices retreated  on Tuesday, extending losses for third day in a row, due to slowdown in demand for the metal as a safe haven, in light of improvement in risk appetite among investors, especially after positive developments of trade talks between United States and China.

Gold prices lost by 0.4% to $ 1,921.39, from today’s opening level of $ 1,929.16, and reached the highest level at $ 1,937.52.

gold prices
In terms of yesterday’s trading, Gold lost 0.5%, in second consecutive daily loss, due to rise of USD against a basket of world currencies

Gold prices fell after optimistic situation between USA and China

China said on Tuesday that it agreed with United States to continue implementing first phase of trade agreement reached last January.Washington affirmed the success of recent talks with Chinese authorities, and that it sees progress and commitment to take the necessary steps to ensure success of latest agreement.

According to data released in United States and China, US Treasury Secretary “Stephen Mnuchin”, Trade Representative “Robert Lighthiers” and Vice Premier of China “Liu He” held talks over phone Monday evening.

On the other hand, “Financial Times” newspaper revealed in a report that administration of US President “Donald Trump” is studying emergency use of an anti-Coronavirus vaccine that AstraZeneca and University of Oxford are working on developing, before presidential elections scheduled for November.

This, and meetings will be held later this week, “Jackson Hole”, which witness discussions between a group of bankers and senior economists.

In terms of US dollar trading, by 20:17 GMT, dollar index fell 0.3% to 93.01 points, and recorded the highest level at 93.3 points and the lowest level at 92.9 points.

Gold holdings of SPDR Gold Trust, largest global index fund backed by gold, increased yesterday by 4.09 metric tons, bringing total to 1,252.38 metric tons.

Professional Trader and Analyst, economist in Financial and Forex marketsince 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.
Mohammed Abdelkhalik

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