Gold is flat on Monday trading as the US dollar is mixed against major pairs. The short trading week due to the US Thanksgiving holiday could end up with lower volumes. The yellow metal is struggling to replicate October’s gains, but the fact that investors have revisited gold as a major safe haven, will keep it to top of mind as the year ends. The US dollar has appreciated against all major pairs year to date but as the Fed nears a neutral interest rate it runs the risk of running out of steam.
Brexit headlines will keep gold bid as uncertainty surrounds the final outcome of the UK’s divorce with the European Union. Theresa May has the tough job of pushing through parliament her Brexit proposal even as Labour is promising a Brexit deal that would leave the UK in a customs union.
China-US trade concerns are keeping flows going into the metal ahead of the G20 meeting between the leaders of the two largest economies in the globe. Although President Trump has been optimistic about the relationship, it appears that China is still to come around to the demands of the United States. Trade war escalation would hit global growth and appreciated the US dollar, but progress shown during the talks in Buenos Aires could boost commodities as demand would grow in a world with less tariffs.
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