Gold prices that had surged amid U.S.-China tensions falter as tensions ease

Korea Economic Daily

Summary

It said that recently gold prices have been adjusting due to the easing of U.S.-China tensions and profit-taking selling.
It reported that last week, gold futures recorded a weekly decline for the first time since August.
It said that with a benchmark interest rate cut expected at the Federal Open Market Committee (FOMC), there is also a possibility of a rebound in gold prices.

Gold prices, which had approached $4,400 per troy ounce, have recently been adjusting. This reflects the easing of U.S.-China trade tensions and the emergence of profit-taking selling.

According to Bloomberg on the 27th, gold futures were trading at $4,060 per troy ounce at 2 p.m. Korea time, down 1.27% from the previous day. December-delivery gold futures on the New York Mercantile Exchange also fell below $4,100 per troy ounce. Last week, gold prices recorded their first weekly decline since August.

Analysts say that progress in U.S.-China trade talks has eased geopolitical tensions, somewhat reducing demand for the safe-haven asset gold.

However, with the Federal Open Market Committee (FOMC) meeting scheduled this week and a 0.25%-point cut in the benchmark interest rate seen as likely, some expect gold prices to rebound depending on the U.S. central bank (Fed)'s decision.

Reporter Han Myung-hyun wise@hankyung.com