Gold prices moved sharply higher during trading on Tuesday, with the previous metal benefiting from its appeal as a safe haven amid renewed trade concerns.
After slipping $3.50 or 0.2 percent to $1,469.20 an ounce in the previous session, gold for February delivery jumped $15.20 or 1 percent to $1,484.40 an ounce.
With the notable increase on the day, the price of gold for February delivery ended the session at its highest closing level in almost a month.
The rally by the price of gold came after President Donald Trump suggested he might prefer to wait until after the 2020 elections to strike a trade deal with China.
Trump told reporters at a NATO summit in London there is no deadline to reach a trade deal, adding, “In some ways, I think it’s better to wait until after the election.”
“But they want to make a deal now, and we’ll see whether or not the deal’s going to be right; it’s got to be right,” Trump said.
Trump claimed a potential trade deal is only dependent on whether he wants to sign it, because the U.S. is “doing very well” and China is “having by far the worst year that they have had in 57 years.”
The comments from the president added to rising trade concerns after his administration threatened to impose duties of up to 100 percent on $2.4 billion in French imports, including champagne and handbags.
The threat comes after the administration concluded France’s new digital services tax discriminates against U.S. companies such as Google (GOOGL), Apple (AAPL), Facebook (FB), and Amazon (AMZN).
The material has been provided by InstaForex Company – www.instaforex.com