Forex Marketz Daily Forex News – Fully Markets Update
Gold futures were trading steady around the flat line during the Asian trade session on Wednesday.
Traders were digesting President Donald Trump’s speech, overnight, in New York.
The American President spoke about trade with China as well as the European Union. He gave absolutely no details on any trade progress with China but said he would significantly raise tariffs if a preliminary trade deal was not signed.
As for the European Union, he said that in some ways, the EU “was far worse” with trade than China. These comments sent capital into the U.S. dollar as traders looked for liquidity. In turn, this hurt the safe haven yellow bullion.
The U.S. dollar index is currently trading near a monthly high price point.
As of 1:20 am GMT, the widely traded spot gold futures contract was trading flat at $1,457.91 per ounce.
U.S. gold futures contract, for front end delivery, was trading higher by 0.3 percent to fetch $1,458 per ounce.
The price of the yellow metal did find some support thanks to ongoing unrest in Hong Kong and the Middle East. Still, positive sentiment kept the bullion on the back foot.
Gold Traders Digest Trump’s Trade Comments and Regional Hotspots like Hong Kong
The only positive thing President Donald Trump said about the ongoing trade talks with China is that a deal was very “close.” He was devoid of any specifics.
The 16 month trade war between the two global superpowers has roiled the global financial markets and slowed global economic growth. This has also supported safe haven asset classes.
Traders are also monitoring the ongoing unrest in Hong Kong. Overnight, the City’s policy battled pro-democracy protesters at several university campuses.
There were some very serious battles in this Asian financial center which has paralyzed the city. Protestors were tear gassed for the second day in a row.
