Gold Prices Inch Up; Trade Talks Remain in Focus

Investing.com - Gold prices inched up on Wednesday as traders paid close attention to the latest developments on the Sino-U.S. trade front after U.S. President Donald Trump warned China that he may raise tariffs even higher.

Gold Futures inched up 0.1% to $1,476.25 by 12:49 AM ET (04:49 GMT).

Trump, speaking after a cabinet meeting of his administration, threatened to put more punitive duties on Chinese goods by Dec. 15 unless the phase one of a U.S.-China deal was inked.

Hopes of the partial trade deal diminished somewhat recently as China repeatedly urged the U.S. to roll back previously imposed tariffs. While high-level officials from the two nations said last week that they are close to signing the deal, Trump has unexpectedly said last Friday that he has not agreed to cancel existing tariffs, before threatening to raise them even higher on Tuesday.

There have also been reports about China's unwillingness to agree to a sizable purchase of U.S. agriculture goods every year as demanded by Washington, creating more uncertainties surrounding the trade talk progress.

In other news, while not a directional drivers for the yellow metal today, situation in Hong Kong received some focus as the U.S. Senate unanimously passed a bill supporting Hong Kong protesters, drawing criticism from China’s foreign ministry.

The “Hong Kong Human Rights and Democracy Act” interferes in China’s domestic affairs, said foreign ministry spokesperson Geng Shuang, according to an online statement in Chinese, which noted that China “strongly condemns and resolutely opposes” the act of interference.

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