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Gold Prices Steady Amid Pessimism On Partial China-U.S. Trade Deal

Investing.com - Gold prices inched up on Tuesday in Asia amid pessimism over the trade deal announced by the Trump Administration last week.

U.S. Gold Futures inched up 0.1% to $1,481.85 per ounce by 11:55 PM ET (03:55 GMT).

Despite the fact that Wall Street reached record highs for a third-straight session, and comments by White House Economic Adviser Larry Kudlow who said the phase one trade deal is “absolutely completed,” some traders remained suspicious about Beijing’s lack of enthusiasm to speak about the deal since Friday.

Analysts said it remains unclear how China will follow through on pledges to increases buying of American agricultural products. Media reports suggested that the demand of annual farm purchases of about $50 billion has been a particular sticking point for the Chinese.

Trade sources said China could simply source grains and feedstock from Brazil and elsewhere for better prices and precise quantities, without such forced commitments.

“The yellow metal is holding strong, despite the fact that we've now scratched off many of the worst-case scenarios in just a few weeks,” TD Securities said in its daily note on gold.

Elsewhere, the Federal Reserve Bank of New York’s gauge of general business conditions in the next six months jumped to a five-month high, adding to the positive mood.

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