The fall in gold prices increased risk appetite
Gold prices fell in Asia on Friday as the risk appetite increased after some optimistic Sino-U.S. Business news.
It’s U.S. Gold Futures fell 0.5% by 12:40 AM ET (04:40 GMT) to $1,466.45.
The fall in gold prices came after White House economic adviser Larry Kudlow said overnight that Washington is close to reaching a partial trade deal with Beijing. Asian stock markets traded mostly in the green today folloing Kudlow’s comments.
Gao Feng, spokesman for the Chinese Ministry of Commerce, stated that the two sides are having “deep discussions on a phase one settlement,” but said rolling back some of the current tariffs is essential to reaching an agreement.
Despite today’s losses, yellow metal prices have gained more than 14 percent this year, with the on-again, off-again trade spat rolling financial markets and attracting safe-holders
Meanwhile, risks associated with political and economic issues such as Brexit, Hong Kong, and trade talks are “too great for something not to go wrong,” DailyFx’s senior currency strategist Ilya Spivak said in a CNBC report.