Gold is heading for its third weekly gain on trade and growth

11:23

Friday, August 16, 2019

Cairo – Agencies:

Gold prices fell on Friday but are heading towards a third consecutive weekly gain, with the yellow metal being seen as a safe haven value reinforced by fears of a slowdown in the global economy and lack of money. clarity of the trade war between the United States and China.

According to Reuters, at 5:37 am GMT, gold fell 0.3% to $ 1,518.60 an ounce during spot trading, but rose by about 1.5 % since the beginning of the week after progressing in the previous two weeks.

Futures on US gold fell 0.1% to $ 1,529.10 ounce.

US President Donald Trump said Thursday that he believed that China wanted a trade deal with the United States and that the dispute with Beijing would be rather brief.

This decision was made after Beijing promised to tackle the latest US tariffs on Chinese goods worth $ 300 billion, but invited the United States to meet at half way to reach a possible trade agreement.

With trade remaining unresolved, investors are protecting themselves against a global slowdown by buying safe assets, such as gold, the Japanese yen and US Treasury bills.

Earlier this week, 10-year US Treasury yields fell below two-year bond yields for the first time in 12 years. The large-scale reversal of the yield curve is a sign that the economy is heading for recession.

Gold has grown 7.4% or more than $ 100 since the beginning of the month, due to rising trade tensions and a series of disappointing economic data globally.

Meanwhile, the dollar index rose on Friday and is heading towards a weekly gain.