Fundamental Comment

Gold resumes drop on progress in US-China trade talks

Gold resumes drop on progress in US China trade talks

Gold prices fell in today's trading to complete three consecutive sessions of losses, as investors focused on the positive developments in U.S.-China trade talks, with some calmness of the accusations towards the position of the American President.

As of 07:12 GMT, gold spot prices hovered around $1,504.35 an ounce, where the precious metal hit the highest level today at $1,543.25 while the lowest level was recorded at $1503.05. Now, the metal is set for a weekly decline.

Developments in the trade war were in the spotlight, as China's top diplomat said on Thursday that Beijing wanted to buy more U.S. products after Washington showed its good will to ease tariffs on a number of Chinese products. 

Officials from both sides will resume talks in Washington at a meeting scheduled for October, where now there are increasing chances that both sides would reach an agreement.

Regarding Trump’s impeachment, the White House released a written text of the call between President Trump and his Ukrainian counterpart yesterday, in which Trump asked his Ukrainian counterpart "known" to investigate a corruption case in Eastern European countries, related to his main rival, former Vice President Joe Biden .

The report did not only show that the American president abused his office in trying to seek Ukraine's interference in the 2020 U.S. election for his own political advantage, but the White House tried to "lock up" evidence of such behavior. 

Gold faced some downside pressure as the U.S. dollar extended its advance for a third straight session, thereby denting the appeal of the precious metal as an alternative investment.  

The dollar index, which tracks the performance of the U.S. currency against a basket of six currencies, is heading towards its best weekly performance in a month, noting that it is currently trading near a three-week high at 98.92. 

As for other metals, silver declined about 1.65 percent at $17.617 per ounce, while platinum and palladium moved in the same direction with drops of 0.88 percent and 0.77 percent respectively.

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