COMEX gold trades in a narrow range near $1220/oz as market players await more clarity on US-China trade talks, Brexit agreement and Italy budget crisis. Trend in US dollar is affecting gold price however overall price continue to be in a range.
US and China President are set to meet on sidelines of the G20 summit to discuss trade issues. Concerns about the US-China trade deal rose after Asia-Pacific Economic Cooperation failed to agree on a joint statement for the first time in its history due to differences over trade. Adding to it, US Trade Representative's office accused China of continuing a state-backed campaign of intellectual-property theft.
On Brexit front, UK Prime Minister and European Union are working on finalizing a deal however UK PM faces difficulty in passing the deal through the Parliament. The European Commission will on Wednesday take the first step towards disciplining Italy over its draft 2019 budget. Italy has set a budget deficit target much higher than acceptable under EU rules.
Gold price fell yesterday as US dollar strengthened on safe haven buying and uncertainty about Brexit and Italy budget crisis. However, weighing on US dollar is mixed economic data, lower yields and Fed's cautious tone on interest rate hikes.