Gold returns weak as lack of interest between US-China trade deal lingers

Kenneth Afor

                                                                                                                
Investors on Tuesday witnessed a slight fall in gold prices in the international market due to the consistent lack of interest between the United States and China in coming up with an agreement on the protracted trade dispute; one of the major reasons causing prices of the precious metal unstable.

December gold future fell by 0.37 percent on Comex exchange at$3.60 by 0.2 percent after rising by 0.2% on Monday.

Meanwhile, Silver for December delivery followed suit after selling by 0.18 percent losing 7 cents by 0.4 percent.

The consistent volatility of the precious metals in the international market as affirmed by Stephen Innes, an industry analyst was hinged on the premise from investors expressing the optimism of a possible trade deal from both countries.

He said, “Rallies remain shallow as gold traders still think a trade deal will happen.’

The decline of the precious metal is at the time the U.S. Treasury yields are surging and its stocks are likely heading towards a three day straight gain. Meanwhile, the 10-year benchmark note achieved about 1.814 percent on Tuesday from 1.808 percent on Monday.

Investors in the New York Stock Exchange (NYSE) are keenly keeping an eye on what generally is presumed to be an ease from the U.S. and China on the trade dispute which has helped the market hedging up buoyantly in recent days.

Innes added, “However, gold remains supported by the fact a comprehensive trade deal, one which would include tariffs rolls back and could shift more neutral the dovish central bank narrative, as unlikely,” Innes wrote.