Gold prices went up on today as the greenback got weaker despite another round of tariffs in the China-U.S. trade war. Yesterday the United States and China worsen the trade war tensions after China administration added $60 billion of U.S. products to its import tariff list in a reaction for President Donald Trump's planned tariffs on $200 billion worth of Chinese goods.
Asian went up and the U.S. Treasury yields were near to four-month highs early today while investors overcome the latest escalation in the U.S.-China trade conflict. Some traders as less severe than expected. Previous developments in the U.S.-China trade conflict have given the investors a buy sentiment, for the U.S. dollar and they believed that the United States has less to lose from the war. That makes dollar-priced gold much more expensive for non-U.S. buyers. Yesterday the U.S. Senate strongly voted to pass a giant spending package that includes $675 billion for the Defense Department and a measure to keep the entire federal government open until Dec. 7. That was a step to avoid a Sept. 30 shutdown. Bond investors are increasing bets on the fact that the Federal Reserve will probably raise the U.S. short-term interest rates into 2019 while the jobs market contract and with inflation going above its 2 % goal.
Spot gold went up about 0.1% to $1,199.16 an ounce. The dollar index, which measures the USD against a basket of six major currencies, was down 0.1%. Gold futures went up 0.1% at $1,203.68 an ounce. Canadian Prime Minister Justin Trudeau is getting a lot of pressure from Business and political leaders to agree on a deal to renew NAFTA and drop his insistence that no deal is better than a bad deal. The Bank of Japan will probably keep its monetary policy stable today and continue its optimistic view on the economy, even while escalating global trade tensions are threatening to slow growth.
Gold prices are going up as Greenback eases
Market Trends - 19/09/2018