Gold brought safe-haven demand on Thursday in Asia after Chile announced it canceled a November meeting. It was a meeting of the APEC council, which aims to give the original venue for the signing of a partial trade deal.
Chile also protracted a state of emergency to some cities across the country. Also, it grappled with nationwide protests started by a proposed increase in public transport fares.
Gold increased prices after the cancellation of the APEC summit. Besides, stock prices drop, and more shareholders retreated in the safe-haven.
Contrarily, offsetting some of that positive impact on gold was just a report. The United States is still planning to sign its partial trade deal with China in November despite the offsetting of the summit.
Gold Futures for the December transfer increased by 0.2% to 1,499.95.
China’s cabinet adviser said he is still optimistic that the signing of the trade deal will happen next month.
The cabinet adviser says both the U.S. and China can achieve success based on mutual trust and benefits. Also, he was involved in the bilateral trade talks as a vice finance minister before retiring in 2018.
The U.S. Federal Reserve cut its benchmark funds rate by 25 basis points ranging from 1.5% to 1.75%.
Moreover, the central bank implies that it may delay its future rate increase plans. It removed a main clause in the post-meeting statement that the Fed needs to act appropriately to sustain the expansion.
Fed chairman, Jerome Powell said central bank officials see the current stance of monetary policy as remaining appropriate.
Gold Rose Before Fed, Then Fell
Gold prices remained up for the first time in three days on Wednesday. It was before retreating into negative territory, that agreement by the Fed were made on the possible final decision about cutting rates.
Gold’s settlement and limited trading under the key $1,500 bullish mark could drop the yellow metal weak. Also, it will be to a new round of selloffs as shareholders seem to be rediscovering their risk relish. Gold and other safe-havens stumbled in recent days as U.S. stocks rallied, pushing the S&P500 to record highs.
Spot gold, which tracks live trades in bullion, settled down $5.85, or 0.4%, at $1,481.92.
In post-settlement trade, the December COMEX gold deal settled down $1.20, or 0.1%, at $1,488.75.
If COMEX gold doesn’t bounce back, it could end the week down 0.6%. But it is still up for the month and year, displaying a 1.6% gain for October and a 14% increase for 2019.
COMEX gold’s grip under $1,500 followed the Fed’s release statement, which gave some clues about further easing.
Unless the Fed signaled that it was not done cutting rates for 2019, this could continue to keep the dollar index higher and lower consumers’ appetite.
The precious metal analyst said they still look for continued range-bound prices of $1,485 to $1,525 for gold. Also, the market gets tossed about on headlines on U.S. politics, Turkey, Argentina, Venezuela, and Chile.
Gold’s rally this year partly based on anxieties over the trade war. White House spokesman said that President Trump intended to end the partial trade deal with Xi Jinping. Also, it will be at the same time in November as the original scheduled APEC.