Gold Prices Rise on Trade Uncertainty

Written by Staff Writer

gold is money 3055758 640Gold rises as trade uncertainty hurts risk appetite -CNBC
"Gold prices gained on Wednesday on lack of clarity on the U.S.-China trade negotiations, keeping markets wary about the tariff war's toll on the health of the global economy. President Donald Trump said a trade deal was 'close' but gave no new details on when or where an agreement would be signed, disappointing investors in what was billed as a major speech on his administration's economic policies.

He also rattled some investors by threatening China with even more tariffs if they do not sign a deal. 'Anything around (U.S.-China) trade talks are going to impact global sentiment...Protests in Hong Kong present major geopolitical risks, something that is going to continue fueling risk aversion,' said FXTM analyst Lukman Otunuga. 'The key concern is whether the U.S. would take a diplomatic stance with regards to Hong Kong. If the U.S. does make a move, it is going to link back to U.S.-China trade talks.'....'We believe gold's recent weakness is primarily a result of cooling sentiment in the futures market and some selling by short-term speculators, trend followers and technical traders...Current weakness represents a buying opportunity in our view,' Julius Baer analyst Carsten Menke said in a note."