US and China Trade War hits GOLD Market
Chinese President Xi Jinping said last week that he will not hesitate to retaliate against the U.S. on trade, The Wall Street Journal reported Monday, citing sources. ‘In the West you have the notion that if somebody hits you on the left cheek, you turn the other cheek,’ Xi said in the report, according to people briefed on his remarks. ‘In our culture, we punch back.
Gold prices edged higher on Friday as optimism over U.S.-China trade talks pressured the dollar, but signs of the U.S. Federal Reserve raising interest rates again this year capped gains. Higher interest rates reduce investor interest in non-yielding bullion. U.S. government debt yields rose Thursday amid reports the U.S. and China have begun outlining a deal to end their protracted trade war.
Gold had hit a 10-month high of $1,346.73 on Wednesday, but minutes from the Fed’s January policy meeting indicated there might in fact be a rate hike this year, erasing gains in gold.