Gold futures rose toward their highest finish in nearly a month on Tuesday, finding haven-related buying interest after President Donald Trump said it might be preferable to hold off on completing a long-awaited U.S.-China trade deal until after the November 2020 presidential election.
Trump’s comments come ahead of a December 15th deadline for the imposition of fresh import tariffs on China.
“Economic uncertainty was sparked following comments from President Trump, which seemed to dash near term hopes of a trade deal with China,” and suggested that “trade negotiations are once again at a serious impasse,” said analysts at Zaner Metals, in a daily note.
Gold for February delivery GCG20, +1.02% on Comex rose $15.20, or 1%, to $1,484.40 an ounce. A settlement around this level would be the highest for a most-active contract since Nov. 6, according to FactSet data. March silver SIH20, +1.70% gained 28.4 cents, or 1.7%, to trade at $17.25 an ounce.
Trump, speaking at a London news conference where he is attending a NATO meeting, said he had “no deadline” when it comes to concluding the long-running U.S.-China trade talks.
“In some ways, I think it’s better to wait until after the election if you want to know the truth. But I’m not going to say that, I just think that,” Trump said.
“Was Trump bluffing again, in an effort to exert more pressure on China, after the latter retaliated against Trump signing the Hong Kong bill? Investors were having none of it and they sold European stocks sharply again,” said Fawad Razaqzada, technical analyst at Forex.com.
“Risk-sensitive currency pairs such as the USD/JPY and EUR/JPY,” he said. So “safe-haven gold and silver rose.”
Trump’s willingness to open new fronts in the trade war also—with Argentina, Brazil and France—despite signs of damage to the global economy has unnerved markets.
On Monday tweeted that he was bringing back tariffs on Brazilian and Argentina steel and the administration also proposed tariffs of up to 100% on $2.4 billion in French imports.
March copper HGH20, -0.98% was off 0.9% at $2.6265 a pound.