Gold Loses Luster as Sino-U.S Trade War Intensifies Amid Holiday Thin Market

Gold edged lower on Monday as the dollar held firm on news that China has cancelled trade talks with the United States, while investors eyed this week’s U.S. Federal Reserve meeting for guidance on future rate hikes. Investors were focused on Sino-U.S. trade tensions, after China cancelled mid-level trade talks with the United States as well as a proposed visit to Washington by vice premier Liu He, originally scheduled for this week. Spot Gold XAUUSD is currently trading at $1198.48 an ounce down by 0.07% on the day while US Gold Futures GCcv1 are trading at $1202.80 an ounce up 0.12% on the day. Liquidity was thin during Asian hours on Monday as markets in Japan and China were closed for a holiday.

Crude Oil Price Surged Up Post OPEC Meet

Latest developments in Sino-U.S tariff wars such as China adding $60 billion of U.S. products to its import tariff list in retaliation against U.S. duties on $200 billion of Chinese goods that come into effect on Monday and cancelling vice premier Liu He’s visit to Washington which was planned to occur this week inspired a sense of caution among global investors resulting in a risk averse market situation across major global markets. Meanwhile Spot Silver XAGUSD is trading at $14.32 an ounce up 0.22% on the day. Investors are awaiting details from the two-day Federal Reserve meeting starting Tuesday, where the U.S. central bank is widely expected to raise benchmark interest rates and shed light on the path for future rate hikes.

Crude oil is seeing bullish pressure after OPEC opted to not even bother discussing increasing output at their latest meeting. The crude cartel will be meeting again in early December, but with the consortium not even hitting their current output caps, US President Donald Trump’s demands that OPEC soothes market fears caused by US sanctions on Iran are unlikely to be met with desirable action. Oil prices rose 2 percent on Monday as U.S. sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel. Spot Crude WTIUSD is currently trading at $72.56/b up 2.05% on the day.