Forex Marketz Daily Forex News – Fully Markets Update
Gold futures contracts firmed on Thursday during the Asian trade session. Traders are monitoring escalating political tensions between the United States and China that could complicate the signing of a preliminary trade accord.
Overnight, President Donald Trump signed into law legislation backing pro-democracy protestors in Hong Kong. China was quick to condemn this move calling them “sinister intentions” and promising unspecified retaliatory measures.
As of 1:30 am GMT, the widely traded spot gold futures contract was trading higher. This contract added 0.2 percent to trade at $1,457.60 per ounce.
The U.S. gold futures contract, for front end delivery, was also up 0.2 percent to trade at $1,456.30 per ounce.
The spot palladium contract was down half a percent to trade at $1,824 per ounce. Palladium is giving back some gains after hitting a fresh all-time high price point at $1,836.61 as there is not enough supply.
Gold Traders React to Heightened Political Tensions between China and the United States
Overnight, President Donald Trump signed into law legislation supporting the protestors in Hong Kong. This is fueling worries that this could delay a preliminary trade accord between China and the United States.
China is now threatening to retaliate to the United States with unspecified retaliatory actions. China’s Foreign Ministry also said that this “act seriously interferes in the internal affairs of China violating international laws and basic principles of foreign relations.”
The government in Hong Kong said that the bill was “unnecessary and unwarranted.” They said that this bill will only harm relations between the United States and Hong Kong.
Traders were also looking at better than expected economic data out of the United States that included labor data and durable goods orders.
In other economic news, overnight in a cabinet meeting, China is speeding up reforms to build “market-based, globalized business environment and break investment barriers for all kinds of companies.” These were part of the comments made by China’s Premier Li Keqiang.
