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Safe-haven Gold Near Flat as Traders Cautious About Limited Trade Deal

Published 16/12/2019, 05:04 pm
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Investing.com - Prices of the safe-haven gold were near flat on Monday in Asia as traders remained cautious about the limited trade deal agreed between the U.S. and China last week.

Gold Futures for February delivery on New York’s COMEX last traded at $1,480.50 by 12:55 AM ET (04:55 GMT), down 0.03%.

The "phase one" trade agreement was announced on Friday. Under the deal, the U.S. suspended some tariffs on Chinese goods that was due to go into effect on Sunday. In return, U.S. exports to China will nearly double over the next two years, according to U.S. Trade Representative Robert Lighthizer.

Lighthizer added that thereis no scheduled date set for the second phase of talks, he noted. His comments contracted remarks by U.S. President Donald Trump, who said the phase two negotiations would start “immediately, rather than waiting until after the 2020 Election.

“Gold bulls believe there are more unknowns than knowns with this trade deal and that’s why gold prices haven’t really fallen much in recent days,” said Adam Sarhan, chief executive at 50 Park Investments in Orlando, Fla.

Elsewhere, investors will pay attention to remarks from several Fed officials in the coming days after the Fed decided to hold rates steady last week.

Dallas Fed President Robert Kaplan, New York Fed President John Williams and Eric Rosengren of the Boston Fed are all due to speak on Tuesday, while Chicago Fed President Charles Evans is scheduled to speak a day later.

Fed Chairman Jerome Powell has said the banks view of the economy remains favourable.

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