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Gold prices hold up amid uncertainties of the U.S.-China deal agreement

Published 27/12/2019, 02:53
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Investing.com – Gold prices kept heading higher on Friday in Asia after breaching $1,500 per ounce on Wednesday. U.S. Gold Futures inched up 0.27% to $1,518.45 by 9:49 PM ET (02:49 GMT) as investors await more details on the phase one trade deal agreement between the U.S. and China.

U.S President Donald Trump said on Tuesday he and Chinese President Xi Jinping will have a ceremony to sign the agreement, according to Reuters.

“The deal is done, it’s just being translated right now.” Trump said.

However, it is not clear when Trump and Xi will meet for signing the agreement as Xi is not planning to attend the World Economic Forum in Davos, Switzerland, which will be held on January 21 to 24.

Experts say the gold prices will be impacted once the two leaders sign the agreement early next year.

“Gold and silver are rising on apprehensions over the U.S.-China trade deal and Trump and his impeachment proceedings. Physical gold demand is still lagging gold investment demand,” noted Chintan Karnani, chief market analyst at Insignia Consultants, in a research on Thursday.

“Both American and Chinese officials are saying that a trade deal will be signed soon. Gold and silver will crash only when trade deal is signed and details are released.” Karnani added.

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