Gold set for weekly gain as US revives trade war with China

  • by Ahmed Mamdouh
  • May 10, 2019, 16:6 AM
  • 1176 Views
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Gold prices held gains on Friday, headed for a weekly gain, on safety demand after the U.S. raised tariffs on Chinese goods.

The precious metal resumed its advance for a second straight session at $$1285.96 an ounce, attempting to halt the latest bearish direction.

Support at $1275 has continued to salvage gold from falling further, but the metal would need to breach $1290 to change its direction upwards.

Meanwhile, there are worries in markets on the back of the elevating trade tensions between the United States and China as the former raised tariffs to 25 percent from 10 percent for $200 billion worth of Chinese goods while the later pledged to retaliate.

The U.S. decision to hike levies on Chinese imports came in the middle of talks between the Chinese delegation to Washington and U.S. Trade Representatives, thereby killing any chance of seeing a trade deal.

There’s “absolutely no need to rush” to reach a deal with China as tariffs are NOW being paid to the United States by China of 25% on 250 Billion Dollars’ worth of goods & products, President Donald Trump tweeted.

The U.S. dollar fell against a basket of major currencies, set for its second consecutive weekly decline, where it is currently hovering around 97.11.

U.S. stocks finished broadly lower on Thursday, extending their fall for a fourth session, where major indexes are currently headed for their worst week this year.

Regarding other precious metals, spot silver was 0.01 percent up to $14.75 an ounce, palladium added 0.12 percent to $1,301 and platinum gained 0.8 percent to $855.70.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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