The price of gold fell below $ 3,300 by the Troy ounce during the night, after having exceeded the bar of $ 3,400 on Tuesday, marking his highest level since he reached a record two weeks earlier, the shopping analyst of Commerzbank, notes Carsten Fritsch.
US trade discussions and in China are due this weekend
“The fall was triggered by news indicating a movement in the commercial conflict. The first talks between high-ranking representatives of the United States and China are to take place in Switzerland this weekend. In addition, a trade agreement between the United States and the United Kingdom was announced on Thursday.”
“The reaction of negative prices shows how much gold has been carried out before by the price conflict launched by the American president Trump and what we could expect if agreements are concluded which lead to a reduction or withdrawal of the prices. This is particularly true in the case of an agreement between the United States and China.”
“The fact that the president of the FED, Powell, put an obstacle to the hope of reductions in early interest rate by the American federal reserve at the press conference after the Fed meeting on Wednesday, he probably provoked gold -contrary winds. Powell's criticism of the American president Trump was not long, after which gold was briefly brought back yesterday.”
