Gold opened the third quarter with a slump back below $1,400 an ounce after the U.S. and China agreed to a truce in their trade war, dealing a blow for now to havens that were bolstered in recent months by the long-running tensions as well as prospects for looser monetary policy.
Prices fell after Donald Trump and Xi Jinping’s meeting over the weekend, at which the leaders of the two largest economies agreed to resume negotiations.
After meeting Xi, Trump said he would hold off imposing additional tariffs on Chinese imports and delay restrictions against Huawei Technologies Co., letting U.S. companies resume sales to China’s largest telecommunications equipment maker. Further details on the deal were light though, and markets are still pricing in an interest rate cut at the Fed’s policy meeting this month.
Chart: Used with permission of Bloomberg Finance L.P.
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