Gold Prices Firmed on Wednesday on Trade & Political Tensions

Gold prices firmed on Wednesday as trade and political tensions ratcheted up between United States and China, while investors awaited minutes from the U.S. Federal Reserve’s October meeting.

Spot gold rose 0.2% to $1,475.63 per ounce by 0742 GMT. U.S. gold futures were unchanged at $1,474.00 per ounce.

U.S. President Donald Trump on Tuesday threatened to raise tariffs on Chinese imports if no deal is reached with Beijing.

The U.S. Senate passed a bill backing human rights in Hong Kong and passed a second legislation to ban export of certain munitions to Hong Kong police forces. China condemned the moves and summoned an U.S. embassy official to demand that the U.S. stop its meddling.

“There are concerns that the latest bill passed in the U.S. in support of the Hong Kong protesters might derail the progress in the U.S.-China trade deal,” Ilya Spivak, a senior currency strategist at DailyFx said.

However, gains in gold are limited as investors are “not quite prepared to take a firm bet ahead of the U.S. Federal Reserve’s minutes,” Spivak added.

Investors are awaiting minutes from the Fed’s October policy meeting, due at 1900 GMT, for further cues on the monetary policy outlook.

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