Gold prices edged lower in cautious trade on Wednesday as upbeat comments from U.S. President Donald Trump on trade fanned hopes of an easing of tariff hostilities.
Spot gold slid 0.2 percent to $1,458.63 per ounce, after having touched a two-week low of $1,450.30 the previous day. U.S. gold futures were down 0.15 percent at $1,465.15.
Trump said that the interim trade deal negotiations were in the “final throes” of an agreement that would defuse the 16-month dispute with Beijing.
His comment came after the Chinese commerce ministry said that top negotiators from the U.S. and China have reached a common understanding on resolving problems toward the signing of a phase-one partial trade deal.
Trump’s comments boosted demand for equities and dented gold’s haven appeal.
However, investors still remain wary of the optimism as Trump kept mum on whether he will sign the bills supporting anti-government protesters in Hong Kong.
Asked by a reporter for a message to Hong Kongers who voted for pro-democracy parties in this week’s district council elections, Trump said: “Well, we’re with them.”
On the data front, official data showed that China’s industrial profits declined at a faster pace in October largely due to falling producer prices and slowdown in production and sales growth.
China’s industrial profits decreased 9.9 percent on a yearly basis in October, following a 5.3 percent decrease in September.
This was the third consecutive decrease. During January to October, industrial profits logged an annual fall of 2.9 percent.
The material has been provided by InstaForex Company – www.instaforex.com
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