Gold On Wednesday, Gold prices rose by 0.41 percent to close at $1462.9 per ounce. After witnessing a constant downfall since last week prices found some support as U.S. President Donald Trump’s speech on their trade agreement with China shrunk the optimism amongst the investors in turn boosting the appeal for the safe haven asset. President Trump threatened that U.S. would further tariffs on China if they fail to strike a deal soon. The 16 month long trade spat had roiled the markets and boosted the appeal for the safe haven asset, Gold in 2019.
Diminishing chances of a possible trade deal between U.S. & China might boost the demand for Gold and push the prices higher. On the MCX, gold prices are expected to trade higher today; international markets are trading higher by 0.02 percent at $1463.55 per ounce.
Last week, spot gold rose by 0.2 percent as worries over a new coronavirus in the major Chinese cities further boosted the appeal for the safe haven asset. The coronavirus outbreak in China led to about 25 deaths and the reported cases of infection confirmed were over 830. The markets expect that newly found virus which has spread in various nations might impact the global economy which boosted the demand for the safe haven asset, Gold. However, the World Health Organization (WHO) didn’t feel the urge to declare a global emergency over the virus outbreak which limited the uptrend in prices. U.S. Treasury Secretary Steve Mnuchin stated that the fresh trade deals with China, Mexico and Canada could help the U.S. economy and helped the U.S. Dollar recover in turn pressurizing the yellow metal prices. China’s consumption of the precious metal dipped for the first time in three year in 2019 reflecting from the high Gold prices and an economic slowdown in the Chinese economy.