Gold Prices Fall Despite Heightened Trade Tension, Weakening Stock Markets
Prices of the safe-haven gold fell on Wednesday in Asia even as equities traded lower amid political concerns and latest news on the Sino-U.S. trade war.
U.S. President Donald Trump said at the United Nations General Assembly in New York that he will not accept a “bad deal” in trade talks with China, while slamming Beijing for “unfair trade practices.”
“Not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping technology transfers and the theft of intellectual property and also trade secrets on a grand scale,” Trump said.
His renewed attack on China signalled little hope for a trade deal in the short term. His comments drove equity markets lower, but the safe-haven gold was not able to benefit from the weakening sentiment.
By 1:05 AM ET (05:05 GMT), Gold Futures for delivery on the Comex exchange were down 0.2% at $1,536.65.
High-level officials from the two nations will meet next month in Washington for more trade talks.
Political uncertainty in the U.S. also weighed on markets, as U.S. House Speaker Nancy Pelosi announced overnight a formal impeachment inquiry against Trump, sparking questions of whether his administration was trying to bully the Ukraine into investigating former Vice President Biden and his son Hunter Biden.