Gold price falls as treasury yields rise on US-China trade talk optimism
Gold prices edged lower on Monday morning as signs of progress emerged in US-China trade talks helping Treasury yields to climb higher.
Gold prices fell on Monday morning to a one-week low as Treasury yields climbed high off the back of improved investor sentiment following positive signs from ongoing US-China trade talks.
Spot gold slid 0.3% to $1,286.74 per ounce, while gold futures for June fell as much as 0.6% to 1,287.29 an ounce.
US-China trade talks reach final lap
In signs that the ongoing US-China trade dispute is nearing a resolution, US Treasury Secretary Steven Mnuchin said that negotiations between the two countries were nearing their final lap.
‘Gold has clearly lost the upward trajectory that it was on, trying to find new supportive catalysts. We’ve seen continued positive murmuring on the trade negotiations in recent days,’ Capital Economics analyst Ross Strachan told Reuters.
‘That’s obviously a headwind for safe-haven gold,’ he added.
Global equities lifted by strong Chinese export data
The myriad of macroeconomic headwinds has helped gold prices surge in recent weeks, but the possibility of an end to the US-China trade talks and strong Chinese export data on Friday last week has given investors reason to be optimistic with global equities rallying.
‘The continued positiveness coming out of equity markets is acting as a drag on gold prices as people have liquidated their positions,’ Strachan said.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Be ready to act on ECB opportunities
Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in September 2020.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
