Stock gold prices on Thursday fell back on expectations that the conclusion of a trade agreement between the U.S. and China, which could reduce geopolitical risks.
the December gold futures on the COMEX decreased by 10.6 dollars, or 0.72 percent, to 1463,60 dollars per ounce. December futures for silver by 0.3% to 17,063 USD per ounce. On Wednesday the price of silver ended the day almost unchanged. On Wednesday, the quotes ended also with a slight decline.
meanwhile, prices in recent weeks have received support from lower interest rates and fed liquidity injections, resulting in lower Treasury yields.
According to analysts, gold needs to hold above key levels in the area 1450-1470 dollars. A dip below these levels will speak about a trend to decrease.
Hopes for a trade agreement between Washington and Beijing have strengthened amid reports that the main trade negotiator with China, Vice-Premier of China Liu he, invited us officials to a new round of negotiations.
in addition, Liu expressed optimism about the probability of the conclusion of the "first phase" trade deals, reports Bloomberg. Liu puzzled by the requirements of the United States, but believes that an agreement will be reached.
the Decline in U.S. stock market on Wednesday and Asian stock markets on Thursday partly occurred amid reports from Reuters that the conclusion of an interim trade deal may be postponed to 2020. In addition, the President of the United States Donald trump has been critical of China's approach to formulating trade agreements.
Tensions between the U.S. and China had also risen after the Senate and the House of representatives passed a bill on the situation in Hong Kong, which trump could sign on Thursday. China regards this law as intervention in its domestic policies.
Some investors are still optimistic about the prospects of precious metals. For expired period of this year gold has risen in price by about 15%, and the dollar over the same period rose 1.7%, as shown by the ICE dollar index, which tracks the value of the US currency against a basket of six other currencies. In theory, a stronger dollar can make gold more expensive for holders of other currencies. Meanwhile, gold becomes more attractive to investors amid very low or negative yield debt instruments of different countries.
"gold prices are trying to restore the pace of growth seen in the first half. The decline in prices over the last few weeks can be seen as a correction and not a trend reversal as long as prices hold above 1450 dollars," said De Villa.
on Thursday, the decline in gold slowed down after the publication of an economic report. We expect the fed Philadelphia business activity index in November reached 10.4, compared to 5.6 in October. At the same time, the number of initial claims for unemployment benefits has not changed and amounted to 227 000, which reflects the good condition of the labour market. According to the published protocols of meetings of the Federal Committee on open market operations, the fed officials believe the U.S. economy is in good condition, however, may encounter problems due to the trade tensions.
