Gold: Long-Term Bullish Bias Stays Intact as US-China Trade Uncertainty Persists
LONDON (April 28) Gold price (XAU/USD) is ticking lower under some profit taking, trading around $3,290 at the time of writing on Monday. The correction comes after a television interview at ABC with United States (US) Treasury Secretary Scott Bessent on Sunday, who mentioned that several big deals were on the table with Asian countries. “If there are 180 countries, there are 18 important trading partners, let's put China to the side, because that's a special negotiation, there's 17 important trading partners, and we have a process in place” said Bessent, and added “some of those are moving along very well, especially with the Asian countries.”
Additionally, US Agriculture Secretary Brooke Rollins said on Sunday that the Trump administration is having daily conversations with China over tariffs, per Reuters. Rollins noted ongoing talks between the two nations and that trade deals with other nations were “very close.” It appears that more easing in the tariff story could be underway, which takes the wind out of the Gold surge.
However, Gold’s price decline could be limited as the Chinese Foreign Ministry reiterated on Monday that President Xi Jinping and US President Donald Trump did not have a call recently. “The US and China have not conducted negotiations or consultations on tariffs,” the Ministry noted.
Looking ahead to the rest of the week, the focal point will be on the April Nonfarm Payrolls (NFP) release on Friday. The US data as a whole will draw much more attention as a barometer to assess the next step of the Federal Reserve (Fed), with the Federal Open Market Committee (FOMC) delivering its next interest rate decision on May 7. The US data last week already started to show signs of a shift, with, for example, Durable Goods revealing a substantial change in consumer sentiment.
Looking ahead to the rest of the week, the focal point will be on the April Nonfarm Payrolls (NFP) release on Friday. The US data as a whole will draw much more attention as a barometer to assess the next step of the Federal Reserve (Fed), with the Federal Open Market Committee (FOMC) delivering its next interest rate decision on May 7. The US data last week already started to show signs of a shift, with, for example, Durable Goods revealing a substantial change in consumer sentiment.
Daily digest market movers: Focus on Panama in trade and tariffs
- Toubani Resources, an African Gold miner capitalised at $61 million on the Australian Securities Exchange (ASX), is trading up after securing commitments for a hefty $160 million debt package in a joint venture alongside a family office, Financial Review reports.
- Thailand’s bond market is on course for its best monthly inflows in more than three years, helped by interest-rate-cut bets and a stronger baht due to surging Gold prices, Bloomberg reports.
- China is stepping up scrutiny of Hong Kong billionaire Li Ka-shing’s plans to sell its Panama ports to a BlackRock Inc.-backed group, while US President Donald Trump sought preferential treatment for US ships in the waterway, adding to uncertainty over whether the blockbuster deal will proceed.
Investing.com
