3 weeks ago
Commodities

Gold Price Little Changed as Trump Raises Hopes of Breakthrough Trade Deal

Investing.com - Gold future price was little changed on Monday in Asia as U.S. President Donald Trump raised hopes of

Investing.com - Gold future price was little changed on Monday in Asia as U.S. President Donald Trump raised hopes of a breakthrough trade deal.

Trump tweeted on Sunday that he will be delaying a hike in U.S. tariffs on Chinese goods originally scheduled for March 1.

The delay was a result of “significant progress” the two sides made on key issues in the ongoing trade negotiations, he said, adding that he expects to eventually reach an agreement with Beijing if progress continues.

The news seemed to have very little impact on gold futures and the U.S. dollar, as they both traded near flat.

Gold Futures inched up 0.01% to $1,332.85 per ounce by 12:07 AM ET (05:07 GMT) on the Comex division of the New York Mercantile Exchange.

Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 96.367.

It is worth noting that the greenback was the preferred safe haven during the height of the trade war.

Looking ahead, data on U.S. fourth-quarter gross domestic product is due to be released on Thursday. The data is expected to show the economy expanded at an annual rate of 2.4% in the last three months of 2018, cooling from a growth of 3.4% in the preceding quarter.

The release of the report was delayed by the 35-day partial government shutdown.

Testimony on the economic outlook and monetary policy plans by Fed Chair Jerome Powell on Tuesday and Wednesday will also be closely watched.

Gold prices were under pressure last week following the release of minutes from the Fed’s January meeting on Wednesday, which painted a less dovish picture than expected.