Gold prices decline amid de-escalation of the trade war between the United States and China
Gold prices fell more than 1% after signs of de-escalation in the trade war between the US and China. Beijing is considering the option of canceling tariffs on some American goods, informs Reuters.
Spot gold fell 1.5% to $3,299.69 an ounce. U.S. gold futures were down 1.1% at $3,310.20. The strengthening of the US dollar also contributed to the drop in prices. In addition, European shares rose after media reports that China is considering lifting tariffs on some US goods.
OANDA’s MarketPulse analyst Zain Vawda noted that the US-China trade deal could cause gold prices to fall further to $3,000 an ounce or even lower, depending on the impact of other factors.
China is currently exploring the possibility of exempting some US imports from the 125% tariff and is inviting companies to submit proposals for goods that could qualify for the exemption. A working group of the Ministry of Commerce of the People’s Republic of China is drawing up lists of goods that can be excluded from the scope of tariffs and is inviting businesses to submit their proposals. Among the potential items for inclusion on the list are eight products related to semiconductor manufacturing, although memory chips do not fall under the exemption.
