Gold prices fall on strong China, the US-Mexico case by Investing.com

Investing.com – Gold haven prices fell on Monday in Asia, due to the sharp rise in shares in China and the conclusion of an agreement with the United States.

August shipments, traded on the Comex division of the New York Mercantile Exchange, fell 1.0% to $ 1,332.05 an ounce around 1:15 pm (5:15 pm GMT).

China's official figures in May were well above expectations, despite fears of an ongoing Sino-US trade dispute, official data revealed this morning.

Meanwhile, the United States and Mexico reached a deal on migration last week to avoid a tariff war, after US President Donald Trump threatened to spoil 5% of import tariffs on all Mexican products this week if Mexico did not commit to tightening its borders.

Despite today's drop, some analysts still estimate that bullion could reach $ 1,400 an ounce this year as investors hedge against risk.

"All dominant asset classes have a question mark at the moment, and that's usually when gold comes into play," said Rhona O Connell, in charge market analyzes for the EMEA and Asia regions of INTL FCStone Inc., in a Bloomberg report. .

"There are enough elements of risk in the outlook for global economies, there is always a degree of geopolitical risk, currencies seem volatile and the fact that the market is considering a recession, equity markets are obviously under threat. ", did he declare.

Gold prices received some support at the end of last week following the release of a weak US employment report on Friday, which raised fears of a rate cut by the Reserve. Federal Republic. Analysts were already expecting a cut before the data was released, as growing trade tensions between the US and China raised concerns about slowing global economic growth.

Fed Chairman Jerome Powell said last week that the central bank would "act appropriately to support economic expansion".

On the Sino-US trade front, US Treasury Secretary Steven Mnuchin said over the weekend that the US would "follow through on our plan" to impose more tariffs if the talks with China were not going well.

US President Donald Trump is expected to discuss trade-related issues with his Chinese counterpart Xi Jinping this month in Japan at the G-20 meeting.