The gold traded down for the past week, while there was no deal in both talks between U.S.-Canada and U.S.-China.
The gold fell as the effect of higher USD after U.S.-Canada failed to reach a deal to revamp the North American Free Trade Agreement (NAFTA). The talks aimed to open more access for U.S. to Canada’s dairy market and Canada’s insistence to kept trade dispute settlement to be maintained.
Another issue on the trade talk that caused the USD rose was Trump threatened to impose more tariff on Chinese imports worth of $200 billion this week.
Within the trade talks the demand for gold is seen falling as the SPDR Gold Trust holding fell 1.25% to 755.16 tons last Friday.
Economic data also took part to drag down the gold price as U.S. tier-1 economic data released in positive territory, with the 2nd estimates of U.S. GDP growth rate at 4.2% compare to 4.1% at the first estimates.
Lingering Trade War to Disrupt Gold Price
For the past week U.S trade war with various region has put the gold price on pressure as it pushed USD to move higher whenever Trump walks into action. This week focus will be the threat to impose another tariff on China’s goods and continued conversation between NAFTA’s member to gain resolution. Will these issues put the gold price in danger this week or give support to the gold?
U.S. 1st week Economic Data
As the gold price majorly effected by the USD, 1st tier economic data from U.S. will be another factor to move the gold price. The trio Friday employment data will had its spotlight as the economist’s expected better results, while ISM data PMI (service and manufacturing) expected to release mix. Will the data give support or pressure the gold price this week?