Gold Futures Recoup Some Losses Following U.S.-EU Trade Deal
Gold futures rise, though they remain lower on week in the wake of a preliminary trade deal between the U.S. and the European Union.
Futures are up 0.2% at $3,315.50 a troy ounce, but are down nearly 4% on week. The precious metal has slipped more than $100 since its high point mid-last week as the U.S. government reached preliminary agreements with several trading partners, Commerzbank analysts say in a note.
The price reaction reveals market fears that the talks could fail, but that risk is now being priced out, Commerzbank says. The U.S. dollar also significantly appreciated in value, weighing further on gold prices, the analysts write.
Still, tariff uncertainty remains high and the economic and inflationary effects are likely to become increasingly apparent in the coming months, supporting gold's safe-haven characteristics, Commerzbank adds.
Source : Dow Jones Newswires
