Gold prices climbed on Monday, but traded off the session’s best levels as President Donald Trump and Chinese officials both appeared to play down the recent escalation in trade tensions.
Gold for December delivery GCZ19, +0.06% on Comex rose $5, or 0.3%, to $1,542.60 an ounce, after tapping an intraday high of $1,565. Prices were on track to notch a settlement at a more than six year high, just as they did on Friday. September silver SIU19, +1.50% rose 27.2 cents, or 1.6%, to $17.685 an ounce after tacking on 2.2% Friday.
“A complete collapse with trade talks could have easily sent gold to $1,650, but it seems Trump is realizing his weekend move was getting ugly for the U.S. consumer and seeing much resistance from American companies,” said Edward Moya, senior market analyst at OANDA. “If we see continued progress with trade talks over the coming weeks, gold may pullback some more, but should still be supported by a plethora of fresh stimulus that will be flowing” from the Federal Reserve, European Central Bank and People’s Bank of China.”
Gold rose Friday after China announced it was imposing retaliatory tariffs on $75 billion in U.S. imports, drawing an angry response from President Donald Trump, who said he was ordering U.S. companies to look for alternative to China. After markets closed Friday, Trump announced the U.S. would further raise tariffs on imports from China.
But early Monday, however, Trump, speaking on the sidelines of the Group of Seven meeting in France, said U.S. officials had received calls from Chinese negotiators and that the two sides would return to the table.