Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts rose Monday during the early Asian trade session. The widely trade spot futures contract was trading near its highest price point since October 2012 as traders worry that the shaky trade war truce between China and the United States could be falling apart.
Political tensions between the world’s two largest economic powers have been tense as the United States is blaming China for the spread of the global Covid-19 pandemic. The U.S. has alluded that the virus could have been accidently released from a lab. There is no proof of this.
The spot gold futures contract, as of 12:42 am GMT, was up 0.9 percent to trade at $1,756.79 per ounce. This is its highest price point since October 12, 2012.
U.S. gold futures, for front end deliver, gained half a percent to trade at $1,765.70 per ounce as the week began.
Gold Trader Monitor U.S. and China Political Tensions
A U.S. economic adviser in the White House said that the “Phase One” trade deal reached between the United States and China back in January is still being expanded and not falling apart.
However, U.S President Donald Trump said that he was “not thrilled” with the agreement and not interested in more negotiations.
On Sunday, China’s commerce ministry said that they were opposed to the latest rules initiated by the United States against Huawei. China said they would do what is necessary to protect the interests of Chinese businesses as well as their rights and interests.
U.S. Retail Sales Plummet in April
For the month of April, retail sales in the United States declined for the second month in a row. This was another record declined as the Covid-19 has battered their economy. The U.S. is on track for its largest economic contraction, in the second quarter, since the Great Depression.
Yesterday, Federal Reserve chairman Jerome Powell said that the economic recovery could stretch deep into 2021. He also said that a vaccine is desperately needed. Powell said that the economy will need three to six more months of government monetary and fiscal assistance, as well.
