Published: 2019.11.22. The rapprochement of the United States and China under the agreement puts pressure on gold

The rapprochement of the United States and China under the agreement puts pressure on gold - Vista previa

The gold price at Asian trading showed a slight decrease on Monday amid news that an interim agreement could soon be signed between the US and China. This was reported by Investing.com.

In the event of a real rapprochement on a trade agreement between the United States and China, the global economy may receive a good impetus for development, which means investors will be less interested in protective assets. In this case, the gold market may again come under pressure, as large investors will shift their capital into risky assets that promise greater returns.

“The signing of a trade agreement may be a signal for investors to sell gold and take profits. However, you should not rush into this. Investors should carefully monitor how relations between the two countries will develop after the signing of the interim agreement. The situation in Hong Kong and with the Chinese company Huawei may complicate the rapprochement of the two largest economies in the world, ”said Jateen Trivedi, an analyst at LKP Securities Ltd.

It is worth recalling that the price of gold fell below an important mark of $ 1,500 per ounce in early November after Fed Chairman Jerome Powell hinted that the interest rate cut in October was the last in the current 2019.