Prices of the safe-haven gold fell on Wednesday in Asia even as equities traded lower amid political concerns and the latest news on the Sino-U.S. trade war. U.S. President Donald Trump pointed at the United Nations General Assembly in New York that he will not accept a “bad deal” in trade talks with China while slamming Beijing for “unfair trade practices.” High-level officials from the two nations will meet next month in Washington for more trade talks.
According to Tramp, not only has China declined to adopt promised reforms, it has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping technology transfers and the theft of intellectual property and also trade secrets on a grand scale. He said Beijing had failed to keep promises it made when China joined the World Trade Organization in 2001 and was engaging in predatory practices that had cost millions of jobs in the U.S. and other countries.
U.S. President`s renewed attack on China signaled little hope for a trade deal in the short term. However, his comments drove equity markets lower, the safe-haven gold was not able to benefit from the weakening sentiment. Gold Futures for delivery on the Comex exchange were down 0.2% at $1,536.65 by 1:05 AM ET (05:05 GMT).
Meanwhile, U.S. House Speaker Nancy Pelosi announced a formal impeachment inquiry against Trump, sparking questions of whether his administration was trying to bully Ukraine into investigating former Vice President Biden and his son Hunter Biden.