By Cornelia Zou
Investing.com - Gold prices rose on Friday in Asia amid skepticism about the U.S.-China trade deal.The two countries signed the phase one trade deal on Wednesday, however, there are still doubts whether the U.S. and China can maintain a cordial relationship.
Gold Futures for February delivery on New York’s COMEX was up 0.19% to $1,553.45by 09:41PM ET (02:41 GMT).
The phase one deal has been criticized for its loopholes. The deal says Beijing will increase purchases of the U.S. products and services by an additional $200 billion over the next two years. The pact halts new tariffs but the huge U.S. levies on $360 billion worth of Chinese products remain unchanged as well as the Chinese tariffs on over $100 billion U.S. products.
Experts say the yellow metal prices may not slide further due to global growth risks.
“Gold prices gave up their earlier gains following a wrath of positive U.S. economic data. This week has not been good for macro-economic traders looking to make a bullish case for gold prices. The longer-term bullish trend for gold has been supported on central bank demand, geopolitical risks, trade tensions and a falling dollar,” Edward Moya, senior market analyst at Oanda, noted in a market update.
“Gold prices however may not breakdown much further as global growth risks remain firmly in place in Europe and as trade concerns will continue to linger throughout the year. As long as $1,540 holds this week, we should see prices continue to stabilize in the coming weeks,” Moya added.