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Gold rises in the face of concern over phase one of the US-China agreement

Gold rises in the face of concern over phase one of the US-China agreement

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Gold prices rise this Friday due to skepticism about the trade agreement between the United States and China. Both countries signed phase one of the trade agreement on Wednesday, however there are still doubts about whether the United States and China can maintain relations constantly.

The futures gold of the New York COMEX futures for February delivery rose by 0.19% to 1553.45 at 4:41 pm (CET).

Phase one of the agreement has been criticized for its loopholes. The agreement says that Beijing will increase purchases of US products and services by $ 200 billion over the next two years.

The agreement prevents the imposition of new tariffs, but the enormous US tariffs on Chinese products worth 360,000 million dollars remain unchanged, as well as China’s tariffs on more than 100,000 million dollars in US products.

Experts say that precious metal prices may not fall further due to the risks of global growth.

” Gold prices reversed their previous gains following a wave of positive economic data from the United States. This week has not been good for macroeconomic traders seeking a justification for being bullish in gold prices. The long-term upward trend of the Gold has been backed by demand from central banks, geopolitical risks, trade tensions and a dollar drop, “says Edward Moya, senior market analyst at Oanda, in a market update.

“However, gold prices may not fall much further as long as global growth risks persist strongly in Europe and trade concerns persist throughout the year. As long as the $ 1,540 level is maintained this week, prices should continue stabilizing in the coming weeks, “Moya adds.

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