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Gold price decreases
Written by: PaxForex analytics dept - Wednesday, 09 January 2019 0 comments
The price of gold is falling at the first half of Wednesday against the backdrop of ongoing negotiations between Washington and Beijing on trade issues that increase investors’ risk appetite. Also, investors tend to play the "dovish" statements of the US Federal Reserve.
As of early morning, the price of the February gold futures on the New York Stock Exchange Comex fell by 2.1 dollars, or 0.16% - up to 1,283.8 dollars per troy ounce. The cost of the March silver futures decreased by 0.2% - to 15.682 dollars per ounce.
Also, precious metals are experiencing difficulties due to the gradual recovery of market demand for risky assets.
On Monday, US and China trade negotiations started in Beijing. As the US Secretary of Commerce Wilbur Ross told CNBC, the parties have every chance to quickly come to an
agreement on pressing issues. The day before, US President Donald Trump wrote on Twitter that the dialogue with China "is going very well."
Gold is traditionally considered a safe asset, so the weakening of global economic risks reduces the demand for this precious metal.
The comments of the head of the American regulator Jerome Powell are holding back the cheapening of gold. As the Powell told the American Economic Association, the Fed will be “very careful” about increasing interest rates. Investors fear that the regulator may curtail the rate increase policy. Usually, a rate increase supports the American currency, which negatively affects the value of gold.