🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Gold Drifts Lower as Trade Truce Talk Rumbles On

Published 11/26/2019, 10:31 PM
Updated 11/26/2019, 10:52 PM
© Reuters.
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PL
-

Investing.com -- Gold prices drifted lower again on Tuesday but remained essentially range-bound amid the latest reiteration of rumors around the status of U.S.-China trade talks.

With the Thanksgiving holiday nearly upon the U.S., major breakthroughs seem unlikely.

White House advisor Kellyanne Conway poured cold water on Chinese claims that a deal was close by telling Fox News that there are still big obstacles in the way.

“Forced technology transfers, the theft of intellectual property, the trade imbalance of a half a trillion dollars a year with the world’s second largest economy, China — this makes no sense to people,” Conway said.

Overnight, the Chinese Commerce Ministry had said that the two sides had reached a "consensus" on how to resolve the remaining issues, but gave no further details.

Having risen strongly on Monday, the rally in risk assets tailed off on Tuesday - but not markedly enough to spur much new demand for havens. By the same token, comments late Monday from Federal Reserve Chairman Jerome Powell that the "glass is more than half full" as regards the economic outlook underlined that there will almost certainly be no further easing of policy this year.

By 9:45 AM ET, gold futures for delivery on the Comex exchange were down 0.3% at $1,459.85 a troy ounce, while spot gold was down 0.1% at $1,453.78.

Ole Hansen, head of commodity strategy as Saxo Bank, said in a weekly note that gold could come under more pressure in the short term as portfolio managers take profits on trades from earlier in the year, in the absence of new fundamental triggers.

"We maintain the view that the upside potential remains but that end of year profit taking leaves the market exposed to a potential deeper correction than the one already witnessed," Hansen said. If gold futures break the next support at $1,448, then the next important level would be around $1,415, he added - a 50% retracement of the June-September rally.

Elsewhere, Silver futures held just above $17.02 an ounce while platinum futures were up 0.4% at $903.90 an ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.