Investing.com – The greatest trade distraction of the century remains alive, markets heard Tuesday, prompting safe-haven gold to climb a few notches in afterhours trade.
Gold futures for December delivery on New York’s COMEX were up $2.85, or 0.2%, at $1,453.70 per ounce by 3:00 PM ET (20:00 GMT) after President Donald Trump had little news to share on when the much-anticipated phase one of a U.S.-China trade deal will be signed.
December gold had earlier settled the session officially down $3.40, or 0.2%, at $.1453.70 on expectations that Trump would lend some clarity on the trade negotiations during his luncheon address at the New York Economic Club. On Friday, the president said he had not agreed to rolling back tariffs as suggested by Beijing to achieve the first phase of their agreement.
Spot gold, which tracks live trades in bullion, was up $3.53, or 0.2%, at $1,459.18 per ounce. It earlier struck a three-month low at $1,445.68.
December gold also struck a three-month bottom earlier in the day, when it tumbled to $1,446.25.
Gold was trading at the key bullish level of $1,500 before falling off that perch after Trump’s announcement last month that Washington and Beijing were getting ready to end their bitter 16-month trade war with an agreement to be concluded over a few phases. Many investors have gold, besides the dollar, as a hedge against the tit-for-tat tariffs in the trade dispute that ran into hundreds of billions of dollars.
“I’m still bearish gold in the near term, but I suspect it will require more positive presidential comments or headlines regarding tariffs and trade to push gold below what could be firm resistance at $1,450,” said Eric Scoles, precious metals strategist at RJO Futures in Chicago. “Should December gold close below that point, I’d expect the next target to be $1,425.”
Trump said in his address to the New York Economic Club that a trade deal "could happen soon, but we will only accept the deal if it is good for the United States, and our workers and our great companies.”
It was a spin on the trade war that the market has heard many times before.
Despite that, U.S. stocks, which hit record highs before Trump’s speech, pushing gold to three-month lows, remained up after he concluded without giving any new leads on China.