Gold Strengthens As Dollar Weakens Ahead Of US-China Trade Talks Later This Week
Gold (XAU/USD) jumped nearly 1% on Friday (8/5) and is back above $3,325 at the time of writing. The precious metal is moving higher as markets are calling the trade deal announced on Thursday between the United States (US) and the United Kingdom (UK) a ‘no big deal’. The US-UK trade deal gives the US better market access and faster customs clearance for exports to the UK, but falls short of a “complete and comprehensive” deal. At the same time, 10% tariffs will remain in place and the UK will be forced to accept $10 billion worth of orders from Boeing, Bloomberg reported.
The fact that this initial trade deal for the US is so poorly designed raises major questions and uncertainty ahead of the China-US summit due to take place in Switzerland over the weekend. Ahead of the meeting, China’s Commerce Minister reiterated his demand for tariffs to be lifted before any trade talks can take place. Meanwhile, US President Donald Trump hinted overnight that people should go out and buy stocks now, Reuters reported.
Source: FXStreet
