A slight increase in gold prices with the market evaluation of the first Trump commercial agreements

Gold prices recorded a slight increase after a volatile week, which was an increase of about 6% during the first two sessions before abandoning most of these profits, while the markets housed the new trade agreement between the United States and the United Kingdom. The alloys were traded above the $ 3316 level, an increase of more than 2% during the week. The agreement gives the United States better to the UK market and accelerates customs procedures on US exports, while the UK receives limited releases from the fees imposed on cars, steel and aluminum. However, the agreement did not reach the level of ‘full and comprehensive’ agreement promised by President Donald Trump. Trump also said he believes that the trade talks scheduled with China this week would lead to “concrete progress”, pointing out that he could consider reducing customs duties of 145% on many Chinese goods if discussions were going well. For his side, Beijing renewed his claim for the United States to cancel the fees imposed on China. The demand for dangerous assets, US treasury bonds have fallen, as investors in the strong labor market data and in the context of the trade agreement with Britain have seen the demand for the most risky assets, which has led to reducing their bets to reduce interest rates. Both income and borrowing costs negatively affects gold which is no benefit. A more flexible tone by the United States over trade could lead to a decrease in the demand for gold as a safe haven, which helped the precious metal to rise by more than 25% this year, to a record level of more than $ 3500 last month. However, the limited agreement between Washington and London and the lack of details means that it will probably not restore confidence in the Trump economic agenda, or expel the concerns about a sharp slowdown in global growth. The immediate gold price rose 0.3% to $ 3,316.46 per gram at 07:30 in Singapore. The Bloomberg index for the dollar remained stable, but it rose 0.5% during the week. Silver, Bolladium and Platinum also recorded minor heights.