Press "Enter" to skip to content

Gold Prices Inches Up, Dollar Also Gains on Trade Worries

Gold prices inched up while the dollar also gainedGold prices inched up while the dollar also gained – Gold prices inched up while the dollar also gained on Monday as China with the U.S.

Citing people familiar with the situation, the Wall Street Journal reported on the weekend that Beijing is unlikely to resume talks with Washington until after November’s mid-term elections.

A proposed visit to Washington by vice premier Liu He originally scheduled for this week is also cancelled, according to the WSJ.

for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.02% to $1,201.50 a troy ounce by 1:20AM ET (05:20 GMT).

Meanwhile, analysts from the Bank of America Merrill Lynch (NYSE:) said the precious metal is likely to surge the next year as trade war concerns and worries over widening U.S. budget deficit began to damage the country’s economy.

Gold prices could hit $1,350 an ounce in 2019, Francisco Blanch, head of global commodities and derivatives research, said in a phone interview with Bloomberg last week.

“We’re still pretty constructive longer term on gold,” because of worries over the future of the U.S. economy even though it’s performing relatively well right now, said Blanch. “In the short run, the effects of strong dollar, higher rates dominate. But in the long run, a huge U.S. government budget deficit is pretty positive for gold,” he said.

U.S. President Donald Trump hinted earlier that the trade war won’t end any time soon, and said in an interview with Fox News that it’s time to “take a stand on China.”

“Eventually the trade wars are going to come back to bite the U.S.,” said Blanch. “It could take longer, it could take shorter, eventually it’s going to happen, but maybe the Fed acknowledges it sooner, which is what people are going to be looking for in terms of getting more bullish on gold. We know that trade wars are not good for the economy.”

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.