The price of gold fell below $ 3,300 per ounce Troy during the night, after having exceeded the 3,400 $ Tuesday, marking its highest level since it reached a record two weeks before, says Commerzbank raw material analyst Carsten Fritsch.
Commercial conversations between the US and China are scheduled for this weekend
“The fall was caused by news that indicate movement in the commercial conflict. The first conversations between high -ranking representatives of the US and China are scheduled to be held in Switzerland this weekend. In addition, a commercial agreement between the US and the United Kingdom was announced on Thursday.”
“The negative price reaction shows how strongly gold was previously driven by the tariff conflict caused by US President Trump and what could be expected if agreements are reached that lead to a reduction or elimination of tariffs. This is particularly true in the case of an agreement between the US and China.”
“The fact that the president of the FED, Powell, put a brake on the hopes of early cuts of interest rates on the part of the Federal Reserve of the United States at the press conference after the FED meeting on Wednesday, it is also likely to have caused winds against gold. Trump’s criticism to Powell soon arrived, after which the gold regretted briefly yesterday.”
Source: Fx Street
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