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There’s a high possibility that the gold prices may go lower in the upcoming days due to a potential US-China trade deal. The US Treasury secretary has said that when the leaders of the two nations meet the framework of the trade deal will be discussed. The yellow metal recouped certain losses on Monday after slowly falling below $4000 an ounce. On Tuesday after a fall of 3.3% the price of gold increased by 0.9%. The previous decline happened because the representatives from the sides of Washington and Beijing stated that they had reached some agreements on tariff-related problems and control of exports. What are the statistics? At 9:27 am in Singapore the spot gold rate increased by 0.8% i.e. $4015.35 an ounce. On the other hand the Bloomberg Dollar Index decreased by 0.1%. Silver decreased by 3.7% on Monday and then increased. In addition platinum metal dipped and palladium soared. On the previous Monday the gold metal dipped quickly from over $4380 an ounce. At the London Bullion Market Association’s precious metals conference in Kyoto the rapid increase in the gold rate followed by its dip was a major topic of discussion. US-China trade deal According to Citigroup analysts the possible trade deal between the US and China and the changes in the gold rate along with the possibility of an end to the US government shutdown can decrease the price further in the upcoming weeks. In addition in the upcoming three months the bank looks at bullion dipping to $3800 an ounce. What’s next? The policymakers of the Fed are expected to further decrease the gold rates by 25 basis points. This may happen during their two-day policy meeting. Scott Bessent the Treasurer Secretary mentioned that the list of five candidates to succeed the Fed Chair Jerome Powell includes current Fed board members Christopher Waller and Michelle Bowman former Fed Governor Kevin Warsh White House National Economic Council Director Kevin Hassett and BlackRock Inc. executive Rick Rieder.
