Despite the talks between U.S. and China in London, the gold price remains rising with about $160 away from touching the all-time high record in April at about $3,500 per ounce.
The U.S. and China had a successful trade talk in London, discussing the rare earth minerals export and the Geneva trade truce. Although this eases the tension in the trade war, the gold price is still advancing with price reaching $3,340/oz.
When tension or volatility rose, whether on the economic or political scale, the safe-haven assets, like gold, usually see their prices increase as their secure and stability brough relief to the investor. However, when the tension drops, so does the assets’ value.
The reverse development in the safe haven assets could be due to uncertainties in the market as investors are waiting to see the progress between both parties after the talk.
The trade war caused by President Donald Trump and his aggressive tariff policy and the tense relationship between the U.S. and China have boosted the gold’s price to the record high this year.
Many are now waiting for the U.S. Treasuries’ auction this Thursday, looking for any sign of weak demand that could push gold’s value.
