Gold futures contracts continue to fall lower as sentiment in the global financial markets improves. Traders are gearing up for China and the United States to sign the “phase one” trade agreement in Washington DC tomorrow.
Today, the United States Department of Treasury removed China from the list of currency manipulators ahead of that agreement signing.
The widely traded spot gold futures contract, as of 1:30 am GMT, was down 0.7 percent to trade at $1,537.67 per ounce.
The U.S. gold futures contract, for front end delivery, was also down. This contract gave up 0.9 percent to trade at $1,537.10 per ounce.
Risk on sentiment is rallying global equities and other at-risk asset classes at the expense of safe haven asset classes.
Earlier this morning, U.S. Trade Representative Robert Lighthizer said that the Chinese translation of the “phase one” trade deal was almost completed. The U.S. will make that public on Wednesday, before the scheduled signing ceremony.
China has also been removed from the list of currency manipulators in a long delayed bi-annual currency report. This reverses the August decision to add China. This announcement coincided with China’s trade delegation arriving in the United States.
Gold Traders Wait on Tomorrow’s Trade Deal Signing between China and the U.S.
Tomorrow, all eyes will be on trade headlines between the United States and China. Chinese Vice Premier Liu He will be in Washington DC. He is scheduled to sign the preliminary trade agreement, called the “phase one” trade deal with his U.S. counterparts.
Traders will also be looking for signs that the two countries will quickly start “phase 2” talks. Signs that the two economic powerhouses are scaling back political tensions over Taiwan and Hong Kong will also be monitored.
Looking at today’s economic calendar, the United States will be releasing key inflation metrics in the form of their consumer price indices (CPI), core and non-core.