Gold Prices Down as Global Stocks Recover on Easing Trade Jitters
Prices of the safe-haven gold traded lower on Friday in Asia after both China and the U.S. indicated that trade talks between the two sides may resume.Gold Futures for December delivery on the Comex division of the New YorkMercantile Exchange fell 0.2% to $1,534.10 a troy ounce by 12:57 AM ET (04:57 GMT).Gao Feng, spokesman for China’s Foreign Ministry, said that Beijing would not retaliate for now against U.S. President Donald Trump’s latest tariff moves.Gao also said China is “willing to negotiate and collaborate in order to solve this problem with calm attitude,” but added it was important for Washington to cancel a tariff increase.“China has plenty of means for counter measures, but under current situation, the question that should be discussed right now is about removing the U.S.′ new tariffs on $550 billion Chinese goods to prevent escalation of the trade war,” Gao said.Meanwhile, Trump said the U.S. and China are set to have trade talks later in the day “at a different level.’
“There’s a talk scheduled for today at a different level,” Trump said in an interview with Fox News Radio without elaborating on what “a different level” means.The news put gold on track for a small weekly loss despite a strong month.On the data front, U.S. GDP data for the second quarter was revised as expected to a slightly lower 2%.Trump once again attacked the the U.S. Federal Reserve following the release of the data.“The Economy is doing GREAT, with tremendous upside potential! If the Fed would do what they should, we are a Rocket upward!” he said.Trump has repeatedly called for the Fed to pursue a more aggressive path of policy easing.The central bank is widely expected to cut rates by 25 basis points in September in order to support the economy in the face of trade uncertainty.
