Gold prices drop as traders continued to monitor Sino-U.S trade progress with uncertainty.

Gold prices drop as traders continued to monitor Sino-U.S trade progress with uncertainty.
Written by:
Andia Rispah
6th December 2019
Updated: 11th March 2020
  • Safe-haven gold prices fell in Asia as traders continued to monitor progress on trade wars.
  • Trade deal uncertainties have pushed investors to the sidelines in recent sessions.
  • The latest U.S. job report due later in the day is expected to generate some attention.

On Friday, the safe-haven gold prices fell in Asia as traders continued to monitor progress on trade wars.

In the global markets, the U.S. Gold futures dropped 0.4% to $1,477.45 at 05:42 GMT.

Earlier in the week, gold hat hit a one-month high of $1,484 per ounce.

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Holdings of the world’s largest gold-backed EFT SPDR Gold Trust dropped to about 888 tonnes compared to 916 tonnes last month.

Now, gold traders are looking at the U.S. Fed Reserve meeting scheduled for next week. 

Analysts expect the Fed to keep rates on hold 1.50%-1.75%.

Gold hasn’t really found a direction, it is indecisive. Right now it is consolidating and waiting for an opportunity which could change on Dec. 15,” said Margaret Yang Yan, a market analyst at CMC Markets.

If the trade talks break down, then the price could spike up. Otherwise, we see gold to continue consolidating towards the year-end,” Yang Yan said.

It’s completely different from earlier in the year when gold was absolutely the star.”

Trade uncertainties

On Thursday, the U.S. President said trade talks were going on well, a remark that pushed the global equities higher.

Trade deal uncertainties have pushed investors to the sidelines in recent sessions.

Uncertainties over the Sino-US trade deal remained, as Trump’s remarks this week sent mixed signals regarding trades progress.

Overnight, he said negotiations with China were going on very well, just a day after he dented hopes for the trade deal.

He said he had no deadline in mind and that the deal could wait until after the Nov 2020 U.S. presidential election.

Meanwhile, Steven Mnuchin, the U.S. Treasury Secretary, told reporters that negotiations between the U.S. and China were progressing well without a deadline for the conclusion.

U.S. job data report

The latest U.S. job report due later in the day is expected to generate some attention.

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