Gold prices stable while Trump speech ignites fear of a government shutdown
On Wednesday, the gold prices sustained stability following the U.S President Donald Trump Union speech in his state promised to construct a border wall by giving little clarity about the developments within the ongoing trade negotiations with China.
Spot gold also retained stability at around $1,314 per ounce during 0431 GMT.
The U.S gold futures were also steady at $1,318 per ounce.
In the chamber of the House of representative, President Donald Trump spoke about the political conflict that he is undergoing due to his warnings that Democrats should end their opponents to funding for a border wall which is essential to stop the illegal migration and illegal circulation of drugs.
Another government shutdown is more likely in risk because of President Donald Trump who is still adhering to the speech of building a border wall, Hitesh Jain, the vice president of Yes Securities informed; further saying that steadier dollar is exceeding the profit of the gold.
Market competitors are aware of the fact that the global macro numbers are reducing. Investment in gold is the best approach and is very much in computation.
Trump’s claims for $5.7 billion for a U.S Mexico border wall funding has stimulated a 35-day historical partial government shutdown which was ended on 25th January while Trump has warned to resume the shutdown if in case he is not satisfied with the discussions.
At the same time on Tuesday, Dallas Federal Reserve President Robert Kaplan stated that unless the U.S economic outlook is not clear the Fed should keep the interest rate where they are as of now, and the process that is in his sight might take other several months.
The interest rate remained steady by the U.S central bank during last week and pledged to be patient before making any adjustments in the future.
The latest Fed meeting signaled that they would be very much in the patient because of the immediate slowdown and due to unreliable trade backdrop. It would still be observed as a peaceful stand even if there is at least one rate hike, Jain mentioned.
Meanwhile, the Trump’s speech did not mention anything important about the China trade front, Chinese officials and U.S officials are confident enough to start another round of trade talks by next week which is held in Beijing, two members who were well known about the plans informed on Tuesday.
Trump has promised to raise 25 percent tariffs from 10 percent over $200 billion goods of Chinese imports as of now if in-case both of them do not agree to a deal by 12.01 A.M on March 2.
As of now gold is unable to form the upside momentum and seems to be battling, Edward Meir the analyst of INTL FCStone mentioned in a research note.
Assets of SPDR Gold Trust which is the biggest gold-backed exchange-traded fund notice a fall of 0.18 percent on Tuesday. There is a drop for 2 consecutive sessions on the assets.
Palladium which is the precious metals also fell by 0.2 percent to $1379 an ounce.
Silver also fell down by 0.5 percent at $15.76, and platinum also slipped by 0.1 percent to $815.