U.S.-China trade talks news becomes as much of an art as parsing tea leaves, with any market possibly to increase or fall depending on the report. While oil prices rose on Monday, gold prices dropped, hitting more than two-week lows.
New York’s COMEX for December delivery on gold futures was down $6.70, or 0.5%, at $1,456.90 per ounce. The low for the session was $1,460.70, which is the bottom since Nov. 8.
Spot gold price settled down $5.94, or 0.4%, at $1,456.10.
Beijing and Washington were so close to the first trade deal, according to the Global Times newspaper.
Adding to the optimistic mood was the weekend announcement that China would seek to enhance protections for IP rights, a sticking point in the talks. Analyst Carsten Menke suggested that intellectual property rights are a key element the U.S. wants China to correct to reach a trade deal.
Contrarily, not everyone convinced the optimistic narrative in the trade negotiations.
The gold market has no major selling, which may suggest that people are still skeptical about these developments. People see them as temporary relief, but not a real longer-term solution, according to Menke.
The trade war is near in its 17th month with the domestic politics of both countries, often shaping the narrative rather than actual trade gains.
U.S. President Trump said a phase one agreement was so close, even though he continues wagging the additional tariff by Dec. 15 in China.
Chinese President Jinping pointed out that China was keen on a deal but will not be dictated by foreign powers. China will fight back if necessary.
U.S.-China Trade Talks Sends Conflicting Signals; Gold Prices Dip
U.S.-China trade talks continued to send conflicting signals to the markets. Gold price dropped in Asia on Monday.
Gold futures dipped 0.4% to $1,465.05.
President Jinping said that China has been working sincerely to try not to have a trade war.
He added that China did not initiate the truce; it is not something they want.
Moreover, the Chinese President Jinping and U.S. President Trump expressed an interest in signing a phase one trade deal. However, the interim of the agreement might delay until next year. Beijing accused the U.S. of meddling in its internal affairs as the U.S. Congress submitted two pro-democracy bills supporting the protestors in Hong Kong.
People’s Daily said the U.S. hopes Hong Kong will go down in turmoil and become an asset in their hands to hold back China’s development.
A phase two trade deal look even less possible as the two nations struggled to reach a preliminary agreement, according to Reuters.
On the other hand, Trump said a trade accord with China is likely so close before noting that the issue is whether or not he wants to make it.
Gold prices were pressured by increasing Asian equities today, as Hong Kong’s Hang Sen Index jumping nearly 2% in morning trade.