Gold prices trying to claw their way back as Trump pushes back on lower tariff proposal
(Kitco News) - Volatility and uncertainty are alive and well in the gold space as prices push into positive territory following disappointing comments on trade from U.S. President Donald Trump.
Although prices are still down more than 3% for the week, the gold market is clawing back some ground as prices move modestly higher in conjunction with equity markets falling to session lows after Trump pushed back on proposals to reduce some of the government’s tariffs on Chinese goods.
December gold futures last traded at $1,466.70 an ounce, off its lows and nearly unchanged on the day, in reaction to the latest trade headlines. Meanwhile, the S&P 500 is trading near is daily lows at 3082 points, also relativley unchanged on the day.
Analysts have noted that gold has struggled to compete with record valuation in equity markets as investors have been optimistic that China and the U.S. were close to and trade deal and ending its ongoing trade war. The gold market is seeing its biggest weekly decline in 2.5 years because of improving risk sentiment and technical selling pressure, according to some analysts.
Afshin Nabavi, head of trading with MKS (Switzerland) SA, said, in a telephone interview with Kitco News that although gold has had a rough week, it is difficult to be outright bearish on the precious metal given all the uncertainty in the marketplace.
He warned that the trade discussion are extremely volatile and will continue to support gold prices in the near-term.
“Nothing has been resolved and until it is, I don’t think you want to be going home for the weekend short,” he said. “Although gold is down, I would rather play the market from the long side.”