Gold Price Rises Amid US-China 'Snag'

Written by Swiss America

gold 680131 640Gold: US-China 'Snag', Lower Demand for Risk, Supporting Short-Covering Rally -FX Empire
"Gold is expected to continue to inch higher on short-covering as long as there is tension between the U.S. and China. Gold could spike higher if those tensions escalate. Gold prices are trading higher for a second session on Thursday as some of the weaker shorts continue to cover positions...Gold traders are likely reacting to falling Treasury yields, weaker demand for risky assets and a lower U.S. Dollar....The catalysts behind the price action are renewed concerns over U.S.-China trade relations. So far this week, gold has recovered about $25.00 of its recent $72.00 break... Gold appears to be going through a normal short-term correction, following a sharp break. The weaker shorts are being spooked by concerns over the lack of progress being made on the trade deal. Traders also fear the tension between the United States and China could flare at any time especially after U.S. President Trump on Wednesday threatened to ramp up tariffs on Chinese goods if the countries failed to reach a deal on trade. Furthermore, the Wall Street Journal reported on Wednesday that U.S.-China trade negotiations had ‘hit a snag’ over farm purchases, with China not wanting a deal that looked one-sided in favor of the United States."

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