Fundamental Comment

Gold remains firm on trade war escalation

Gold

Gold prices rose significantly today in Asia, after China confused the public scene in the trade war with the United States of America, when it denied its willingness to accept the demands of the United States of America in their quest for calm and non-escalation.

As of 10:19 GMT, the precious metal price rose to $1,530.75 an ounce. Gold futures opened today at $1,538.10 an ounce, while the session's high was at $1,554.45 an ounce. 

Trade war and its impact on gold

The recent signs of calm in the U.S. - China trade war over the past few days has played a major role in leaking relief to investors in global markets.

U.S. President Donald Trump announced that Beijing had reached out to senior U.S. trade officials, and for its part, it was fully prepared to sit at the negotiating table in the coming period.

China, for its part, responded to the U.S. statements by Hu Xijin, editor-in-chief of China's state media Global Times, who announced that Us President Donald Trump is exaggerating somewhat about the phone calls between the two countries' trade commissioners, but added Beijing's rejection of recent tariff escalations between the two countries does not contradict Beijing's position on trade issues, which he said will not change and China will not give in to U.S. pressure in any way.

On the other hand, it became clear to all the consequences of the trade war between the United States of America and China, which led to a slowdown in the global economy as well as increased the likelihood of the global economy heading towards a possible recession.

Investors in the global markets are waiting for the outcome of the trade talks scheduled to take place next month, the markets are divided towards excessive optimism in the near agreement of trade that will rein in the parties and excessive pessimism in the continuation of the escalations between the two countries and the continuing repercussions trade war between them on the global economy

Share Article