XAU/USD GOLD – US China Talks Report Unlocks Risk Aversion

September 12, 2018 Share Print 0

Gold rose on Wednesday after a posible meeting between the US and China to discuss trade was reported to be planned by US Treasury Sec Mnuchin. Trade war tensions have pressured the yellow metal making the US the most desired destination. Signs of goodwill form the US unlocked risk appetite and investors are taking gold to $1,207.

Gold is still sensitive to geopolitical factors. The economic calendar will bring inflation data in the US to the forefront. A higher inflation scenario could lock in two rates hikes for the U.S. Federal Reserve and keep gold in the current tight range. A solid CPI number in the States and the beating of the trade war drums are the worst case scenario for commodities this week.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

Bio
Twitter
Google+
Latest Posts

Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.