Forex Marketz Daily Forex News – Fully Markets Update
Overnight, gold futures pared some gains. Traders were digesting comments that President Donald Trump will meet, next week, with China’s President Xi Jinping at next week’s Group of 20 (G-20) meeting in Japan.
Traders are hoping for an end to the bitter trade conflict between the two economic super powers which has roiled the global financial markets.
Earlier, on Tuesday, the yellow metal futures surged one percent after the European Central Bank joined the U.S. central bank with possible more accommodative monetary policy on the near horizon.
As of 2:44 pm GMT, the widely traded spot gold futures contract was up 0.2 percent to trade at $1,342.15 per ounce. Prices eased back from $1,354.20 per ounce after Trump tweeted that he had a “very good telephone conversation” with China’s president.
U.S. gold futures, for front end delivery, closed up $7.80 at $1,350.70 per ounce overnight during the North American trade session.
Gold Reacts to Trump and Xi Meeting at the end of the Month in Japan
Trump and Xi will meet next week and traders are hoping that they can resolve their trade spat that began a year ago.
Yesterday, President Trump said that he will be meeting with China’s President at next week’s G-20 Summit in Osaka Japan, the American president also added that trade officials from both sides will meet before the G-20. This was a welcome development for global financial markets after the collapse of trade talks last month.
China has officially confirmed that President Xi will indeed meet with the U.S. President. However, their tone is more cautious. President Xi thinks both sides should continue to meet in order to resolve the trade dispute. Xi added that “the United States would treat Chinese firms with respect,” in an apparent slight over Huawei. Xi also said that by not talking was bad for both economies and for the world.
