Gold Prices Fall as Traders Weigh Brexit, China GDP and Sino-U.S. Trade Talks

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Investing.com – Gold prices fell on Friday in Asia as markets were busy digesting news on Brexit and the Sino-U.S. trade war. Weak China GDP data failed to push the prices of the safe-haven metal higher.

U.S. Gold Futures for December delivery dropped 0.2% to $1,494.95 per ounce by 1:05 AM ET (05:05 GMT).

Risk appetite improved yesterday after the U.K. and the EU announced that they struck a Brexit deal, but concerns about the deal passing grew as markets now worry about U.K. Prime Minister Boris Johnson’s chances of winning parliamentary ratification for the deal.

The Northern Irish Democratic Unionist Party (DUP), whose 10 parliamentary votes Johnson would need to get any deal approved by the Commons, has so far balked at the notion of an effective customs border separating Northern Ireland from the rest of Britain.

Meanwhile, China’s third quarter GDP grew slower than expected. Chinese stocks turned lower following the release of the data but the safe-haven gold were not able to benefit from the report.

Ongoing trade war with the U.S. remained in focus.

Beijing said on Thursday that it hoped to agree on a phase on trade deal with the U.S. “as soon as possible,” but warned that Washington must cancel new tariffs for a full trade deal.

“We hope both sides can continue to work together to advance the negotiations and, as soon as possible, reach a phased agreement and make new progress on canceling tariffs,” said China’s Ministry of Commerce spokesman Gao Feng.

“Both sides’ ultimate goal for the negotiations is to end the trade war, cancel all additional tariffs,” he said. “This is good for China, good for the U.S. and good for the world.”

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