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Home / Business / Gold prices fall and stocks gain as hopes rise on trade talks

Gold prices fall and stocks gain as hopes rise on trade talks



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The gold price has fallen the most for a year as investors sold the precious metal as signs of progress in US-China trade talks.

Gold The largest decline since June 201

8, which was often considered a safe asset in times of uncertainty, fell 2% to $ 1,382 per ounce.

Market observers expressed their optimism about a possible US-China trade agreement that led to this move.

In the US, the broad S & P 500 stock index hit a new record, beating the high of June 21st.

The Dow Jones gained 0.8%, the S & P 500 gained 1% to 2,971.41 and the Nasdaq technicals rose 1.7%.

In Europe, both the British FTSE 100 index and the German Dax index rose by 1.3%.

  • US and China agree to resume trade talks
  • Brief overview of US-China trade war

"Gold is doing well in times of concern about growth, market volatility or if markets are considering the powers well "You lose control of events," said Russ Mold, investment director at stockbroker AJ Bell.

"A trade deal would deal with all three issues and the markets are happy to argue that a deal is coming, yet it may still be a long time before it happens."

Trade Dispute

The negotiations between China and the US have dominated market movements for months, as positive statements often lead to additional tariffs and broadcasts. Stock, currency and commodity markets are moving up and down.

The final steps follow a commitment to extend the bet on renewed talks between the US and China, an agreement reached at the G20 summit in Japan.

US President Donald Trump agreed to halt $ 300 billion in new customs duties and loose restrictions on Huawei while China agreed to make new purchases of US agricultural equipment.

Last year, the US imposed three customs rounds on Chinese goods worth more than $ 250 billion. China slashed tariffs by between 5% and 25% to $ 110 billion in US products.

A ceasefire agreed last December failed, and in May, the US increased tariffs to $ 200 billion in Chinese products from 10% to 25%. Once again, China paid $ 60 billion in tariffs on US goods.

"Strong Upswing"

The price of gold also declined after rising 8% in June and prices surpassing $ 1,400 a troy ounce.

"I just had a strong run, nothing goes up in a straight line," said Mr. Mold.

While it does not earn any income, as a stock or bond would, Gold's indestructible nature and its place in history make it valuable. It is attractive to some investors in times of crisis.

Other safe haven assets, including the Japanese yen and the Swiss franc, eased. The dollar rose 0.4% against the yen to 108.26 and 0.7% against the franc to 0.9830 francs.


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