Gold Flat Again As Trade War Optimism Dampens Safe-Haven Demand
Gold (XAU/USD) slumped to $3,170 at the time of writing on Thursday after headlines from US President Donald Trump caused traders to book more profits and sell more of their Gold holdings. In his latest comments on Thursday during a visit to the Middle East, Trump said talks with Iran on a nuclear deal were possible, CNN reported. Trump added that Syria and Yemen deserved a chance, which was seen as a major step in easing tensions in the Middle East.
The headlines caused traders to sell Gold as they signaled that global geopolitical tensions were easing. Meanwhile, progress in trade talks also added to the bearish drag on the precious metal, with China suspending a ban on exports of goods with military and civilian applications to 28 US companies. The détente between the two largest economies has dampened bids for Gold since the start of the week, Bloomberg reported.
Gold traders’ attention also turned to Turkey, where top US and European diplomats met to discuss a possible breakthrough in the Russia-Ukraine war. However, the chances of major progress in the negotiations appear unlikely as Russian President Vladimir Putin will not attend the meeting.
Source: FXStreet