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Gold prices ascend as investors closely watch US-China trade clashes
On Wednesday, gold prices managed to tack on in Asia. At the same time, the evergreen buck stood still due to the fact a great number of market participants closely watched everlasting US-China trade clashes.
As a matter of fact, by 1:44 AM ET December delivery gold futures headed north by up to 0.1% coming up with an outcome of $1,224.4 a troy ounce.
On Tuesday, another round of US-China trade escalation took place because on Tuesday a 53-page report was published. In this document, US Trade Representative Robert Lighthizer officially accused the Asian country of a state-backed campaign of technology and intellectual property theft.
The US statesman pointed out that China hasn’t changed its policies, practices as well as acts having to do with intellectual property, technology transfer and also innovation. What’s more, China has taken a number of unreasonable actions for the last time, the statesman added.
Moreover, market participants will probably switch their attention to the G20 leaders' summit expected to be held later this month in Argentina. Exactly at this event, American leader is anticipated to meet with his Chinese rival Xi Jinping.
Evaluating the purchasing potential of the evergreen buck against its primary peers the USD index inched down by nearly 0.03% ending up with 96.67.
As for trading volumes, they’re generally anticipated to stay subdued ahead of the Thanksgiving holiday in the United States on Thursday.
The gains on the 10-year American Treasuries rebounded from Tuesday’s seven-week minimums, heading north by up to 3.081%.
The evergreen buck soared versus the Japanese yen. The currency pair USD/JPY hit 112.83 having tumbled to a three-week minimum of 112.29 on Tuesday.
As for the common currency, it leapt. The currency pair EUR/USD added 0.25% trading at 1.1398 having dived by 0.71% in the previous trading session.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.