Mon, June 05, 2023

Spot Gold Price Hikes After Trade War News | Wibest

Wibest – Spot Gold Price: Gold bars on top or a US dollar bill.

Spot gold price inches up in today’s trading after the news from the trade war revive gold bulls. In the past sessions, the lack of sureness about the direction of the controversial dispute was confusing traders in sessions.

Just in, Chinese state-owned media published that Chinese and US diplomats held another phone call. According to the report, the conversation was to address the concerns regarding the first phase of the deal.

Beijing said that the two sides have agreed to stay connected about the deal.

The call gave signs that the Chinese government wants to separate the negotiations from other issues.

The XAU USD pair went up by 0.13% or 1.94 points in Tuesday trading sessions.

Spot gold price is now at $1,456.81, moving higher from its previous close of $1,454.87.

Unfortunately, the news was not enough to push the precious metal even higher. The lack of trade war-related news in the past days has confused traders as to where the negotiation is currently situated.

Since November 20, spot gold price has continued to fall after a bearish reversal.

However, there are still doubts about whether the US and China could reach an agreement before the year ends. This is because of the latest bill that the US House of Senate approved affecting Hong Kong and Mainland China.

When Will it End?

Wibest – Spot Gold Price: Gold bars on top of gold nuggets.

November has not been good for gold traders at all. Spot gold prices sharply fell in the first few days of the month. Now, the lack of headlines and considerable progress in the trade war holds the precious metal below $1,472 ranges.

The agonizing conflict between the two largest economies brought prices at an all-time high in September. Traders couldn’t successfully hold on to those levels as news started refueling hopes of an agreement.

Earlier today, the Chinese Ministry of Commerce announced that the top negotiators from Washington and China conversed via phone call today.

The officials involved were US trade Representative Robert Lighthizer, Treasury Secretary Steven Mnuchin, and Chinese Vice-Premier Liu He. According to the ministry, they discussed how to address the core concerns and have successfully reached consensus on the solution.

Chinese media also reported that Liu has already talked to the US officials ten days earlier about the core concerns.

However, the market is still concerned as the phone call comes after China called US Ambassador Terry Branstad to Beijing. The Chinese government summoned Branstad to raise their concerns through the House of Congress about the US Senate’s new bill.

It is feared that the Hong Kong unrest will interfere with trade negotiations as the US Senate steps in.

Other Metals in the Market

Trade war-related news has caused the yellow metal prices to fluctuate in sessions. Although aside from the XAU/USD, or spot gold price, trades are also monitoring other precious metals in the market.

The Philadelphia Gold/Silver index dropped by 0.82% or 0.77 points this Tuesday’s trading.

Meanwhile, the silver contract only inched up by 0.03% or 0.005 points. A troy ounce of silver currently trades around $17.035 today.

Platinum futures, on the other hand, went up by 0.35% or 3.15 points in sessions. And the US palladium contract rose 0.80% or 14.20 points this Tuesday.


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