By Giles Coghlan, Chief Currency Analyst at HYCM
Gold is being pushed around by the latest US-China trade war developments. When the market is optimistic about a US-China trade deal then gold is finding sellers. The big picture is that a growing global economy will allow a normalisation of central bank policy.
When the market is pessimistic about a US-China trade deal then gold is finding buyers. A breakdown in relationship between the US and China will slow global growth, allow for a longer low rates environment and keep gold bid. So, gold traders should look to the latest US-China trade news for their near term direction. In the chart below gold was bid on the news that China was pessimistic about a trade deal with the US yesterday. Watch this narrative for moves on gold.