- Gold recovers after posting its biggest fall in over a month.
- China is looking for a significant rollback in tariffs before finalizing ‘phase one’ trade agreement with Washington.
- U.S. dollar maintains three-week highs.
The price of gold bounced on Wednesday, one day removed from its steepest drop in over a month as investors began to doubt the prospect of an interim trade deal between the U.S. and China.
Gold Price Recovers; Silver Follows
Precious metals were higher across the board Wednesday, a reflection of subdued risk sentiment in the market. Futures on December gold deliveries reached an intraday peak of $1,495.90 a troy ounce on the Comex division of the New York Mercantile Exchange. That represents a gain of 12.10, or 0.8%.
After plunging more than $20 on Tuesday, December gold futures return above $1,490.00 an ounce. | Chart: barchart.com
Silver futures edged up 4 cents, or 0.2%, to $17.61 a troy ounce.
Precious metals sold off Tuesday, wiping out more than a week’s worth of steady gains. The gold price plunged all the way down to the mid-$1,480 region after trading around $1,515 at the start of the week.
Gold’s premium over silver rose by 0.3% on Wednesday to reach 84.58. That’s how many ounces of silver are needed to buy one ounce of gold.
On the currency front, the U.S. dollar continued to trade near three-week highs against a basket of major peers. The dollar index (DXY) was last spotted just below 98.00 following a sharp two-day rally.
China Could Delay ‘Phase One’ Trade Deal
It has been nearly four weeks since President Trump announced his ‘phase one’ trade deal with China.