“If we see steady progress with trade talks over the next few weeks, gold may pull even further, but it should still be backed by a plethora of fresh stimulus to flow” from the Federal Reserve, the European Central Bank and the People’s Bank of China. . ”
Gold for December delivery GCZ19, + 0.18% at Comex rose $ 5, or 0.3%, to $ 1,542.60 an ounce after pressing a day high of $ 1,565. The mimetics were well on track to reach a settlement in a more than six-year high, just like they did on Friday. September SIU19 silver + 1.48% rose 27.2 cents, or 1.6%, to $ 17,685 an ounce after dropping 2.2% on Friday.
Gold prices rose on Monday, but exchanged better session levels as President Donald Trump and Chinese officials both appeared to lower the recent escalation in trade tensions.
“A complete collapse with trade talks could have easily shipped gold to $ 1,650, but it seems Trump is realizing that his weekend move was getting ugly for the American consumer and was seeing a lot of resistance from US companies,” he said. Edward Moya, senior market analyst at Oanda.
Gold rose on Friday after China announced it is imposing retaliatory tariffs on over $ 75 billion in US imports, drawing a furious response from President Donald Trump, who said he was ordering US companies to do so. to look for alternatives to China. After markets closed on Friday, Trump announced that the US would further increase tariffs on imports from China.
But early Monday, however, Trump, speaking on the sidelines of the Seventh Group meeting in France, said U.S. officials had received calls from Chinese negotiators and that both sides would return to the table.
Trump’s repeated criticisms of Fed chairman Jerome Powell, whom he described as an “enemy” along with Chinese leader Xi Jinping on Friday, were also providing basic support for the metal.
“Gold is benefiting not only from the escalation of the trading dispute itself, but also from the resulting weak stock markets and falling bond yields. He’s really living up to his status as a safe haven, “Daniel Briesemann, analyst at Commerzbank, said in a note.
September HGU19 copper, + 0.38% gained 0.2% to $ 2,535 pounds.
Among the funds traded on the exchange, SPDR Gold GLD + 0.11% marked 0.4%./MarketWatch.com