- The US-China trade stalemate keeps the risk sentiment on edge.
- Positive comments for China, one of the top 2 gold buyers, further strengthened the bullion.
With the Chinese media repeatedly flashing worrisome signals concerning its trade spat with the US, Gold prices rally to the day’s high near $1337 during early Thursday.
Among the key headlines that triggered risk aversion are the accusations that the US distorts the market economy and comments from Wu Xiaoqiu, vice president of the Renmin University of China that portrays diminishing chances of the US-China trade deal.
While Global Times was on the anti-US spree, comments from China’s State Administration of Foreign Exchange (SAFE) and Vice Premier Liu He praising the dragon nation added further strength into the buying as the Asian nation occupies top spot in the gold customers’ list.
Previously, the US President Donald Trump indicated brighter chances of a trade deal with China amid no deadline to levy fresh tariffs, moving away from his previous threat to levy tariffs on $325 billion worth of Chinese goods.
Alike Gold, Japanese Yen (JPY) was also on the bids whereas gauge of global risk sentiment 10-year US treasury yield lost 2 basis points to 2.105% by the press time.
It should also be noted that risk-off continued to rule global equities as not only Wall Street but Asian shares were also lingering by the time of writing.
Given the absence of major data, investors are more likely to concentrate on political events/developments for fresh clues.
Unless clearing $1342, the yellow metal is less likely to aim for $1348 whereas $1320 holds the gate for a fresh downturn towards April high near $1310.