Gold bulls take profits as Dollar firms and US stocks firm-up

The price of gold has run into resistance as markets in the US firm up following a sour end on Friday. Gold prices have been reacting to President Donald Trump and Chinese officials playing down the recent escalation in trade tensions. 

Trump, speaking on the sidelines of the G7 meeting in France, said that they had received calls from the Chinese in order to open the pathway to find a solution to the trade wars. However, there were conflicting headline with news that the Chinese Foreign Ministry, Geng Shuang, said he was “not aware of” such a phone calls. Then, on the other hand, a Reuters news reported that Vice Premier Liu He said on Monday said that Beijing hopes to resolve the trade war through “calm” negotiations and isn’t seeking to escalate tensions. Subsequently, US stock markets bounced back on Monday at the time of writing, the Dow Jones Industrial Average, DJIA, has added 180 points, or 0.73%, to 25,816, while the S&P 500 index has 23 points, or 0.77%, to 2,868 and the Nasdaq Composite Index has climbed 90 points, or 1.12%, to 7,548.

Gold whipsawed on conflicting tradewar sentiment

Spot gold is currently trading at $1,527.25 having travelled between $1,525 and $1,555. The price for the December contract and delivery on Comex edged down by 40 cents, or 0.03%, to settle at $1,537.20 an ounce. The price had made an intraday high of $1,565 whereby prices rallied 1.9% climb on Friday to a more than six-year high of $1,537.60. However, the Dollar made a comeback with the DXY moving up by 0.4% and got back onto the 98 handle as gold futures settled. Gold's sister currency, silver, was up 1.36% heading into the final hour on Wall Street having travelled from a low of $17.39 to a high of $17.77 and the gold and silver ratio was down by 1.17% as silver continues plays catch up with gold in a risk-off environment. The September silver was settling 22.8 cents, or 1.3%, higher at $17.641 an ounce after adding on 2.2% on Friday.

Gold levels