BREAKING NEWS
latest

728x90

header-ad

468x60

header-ad
DutchEnglishFrenchGermanItalianPortugueseRussianSpanish

Monday, January 20, 2020

Gold Prices Inch Up as Traders Weigh Trade Deal Impact on Markets

© Reuters.  © Reuters.

By Alex Ho

Investing.com - Gold prices inched up on Monday in Asia amid speculation of the potential success of the U.S.-China trade deal that was signed last week.

Gold Futures for February delivery on New York’s COMEX traded 0.1% higher at $1,562.05 by 1:27 AM ET (05:27 GMT).

The yellow metal initially fell China agreed to purchase at least $200 billion worth of US goods over the next two yearslast week, but recovered some of its losses as analysts began to question the potential success of the deal, and the chances of the trade war recurring with both nations keeping much of the tariffs they had imposed on each other prior to the agreement.

Elsewhere, the U.S. Commerce Department reported strong U.S. housing starts and retail sales figure last Friday, reducing chances that the Federal Reserve would cut rates later this month.

The Fed slashed rates by a quarter percent point for three months back to back in 2019, before bringing that easing cycle to a halt in December. With U.S. economic data mostly upbeat now, analysts do not expect the central bank to embark on a new round of cuts unless the trade war recurs.

“Following a noteworthy positioning squeeze, the yellow metal is creeping higher once again,” TD Securities said in a note. “Along with positive expectations for growth comes the potential for inflation to creep higher, and without a commensurate Fed response, this would translate into lower real rates.”

Original Article
« PREV
NEXT »

No comments