Mubasher: Gold prices rose on Wednesday after a speech by President Donald Trump disappointed hopes for a progress towards a trade pact between the US and China, spurring safe-haven purchases, according to Reuters.
By 8:11 am GMT, spot gold rose by 0.49% to $1,463.50 per ounce, while US gold futures climbed by 0.67% to $1,463.40 per ounce.
Asian equities and Wall Street futures retreated as worries mounted about the possibility that trade talks were halting, while fears were on the rise on heightened unrest in Hong Kong which pulled down riskier assets.
President Trump said in an address to the Economic Club of New York on late Tuesday that negotiators from the US and China were near to a “Phase One” trade deal, but failed to offer new details, including the date or the venue for signing it.
“Trump, on one hand, said the deal was close and, on the other hand, said he will raise the tariffs if a deal is not reached,” CMC Markets chief strategist Michael McCarthy was quoted by Reuters.
Later on Wednesday, the Federal Reserve Chairman Jerome Powell will be testifying on the economic outlook before the congressional Joint Economic Committee.
“Slowing economic growth, geopolitical risk and an easing interest rate cycle remain the reality,” a note by Australia and New Zealand (ANZ) Bank was quoted by the news agency.
All of these bullish factors are expected to support demand for the yellow metal through next year, ANZ said.