Kept supported by ongoing global growth worries and geopolitical tensions, gold prices continued to rise after Democrats in the US House of Representatives launched a formal impeachment inquiry into President Donald Trump. Announced by House Speaker Nancy Pelosi, the formal impeachment inquiry was due to the allegation that President Trump pressured Ukraine President Volodymyr Zelenskiy to investigate Democratic presidential candidate Joe Biden ahead of presidential election next year. On the trade front, President Trump reiterated that in his speech at UN General Assembly that China receded from its previous commitments and blamed China for forced technology transfer and stealing intellectual property rights while China’s foreign minister Wang Yi stated Beijing would not bow to threats and hoped high-level talks next month to produce positive outcome. Moreover, it is reported that China is preparing to buy more soybeans and pork from the US ahead of trade talks in October.
While global growth worries due to weak economic indicators continued to support gold prices, yellow metal rose due to political uncertainty in the US as Democrats launched a formal impeachment inquiry into President Donald Trump on Tuesday.
As of 13:50 GMT+3, spot gold was trading at $1,529.07 an ounce while dollar index was at 98.59. Falling further due to weaker US consumer confidence, US 10-year Treasury yield was at 1.649.
AxiTrader market strategist Stephen Innes said on Reuters that alongside with macro weakness, impeachment process could cause falling stock markets and weaken dollar which would be positive for gold.
Democrats in the US House of Representatives launched a formal impeachment inquiry into President Donald Trump yesterday due to the allegation that President Trump sought for foreign support to smear Democratic presidential candidate Joe Biden ahead of presidential election next year. According to the reports, President Trump had a phone call with Ukraine President Volodymyr Zelenskiy in July and pressured him to investigate Biden while using financial aid to Ukraine worth $400 million as a leverage. Nancy Pelosi, Democratic Speaker of the House, said “the president must be held accountable, no one is above the law,” while President Trump denied allegations of using financial aid as a leverage and announced meeting transcript would be released on Wednesday.
On trade front, President Trump reiterated in his speech at UN General Assembly that China receded from its commitments and stated he would not accept a “bad deal” with China. He kept blaming China for forced technology transfer and stealing intellectual property rights and stated the US would not tolerate China’s unfair trade practices anymore while China’s foreign minister Wang Yi said Beijing would not bow to threats and hoped high-level trade talks next month to produce positive outcome. Regarding the comments by President Trump that how China handled protests in Hong Kong was watched closely, Wang said China hoped the US to respect its sovereignty and its efforts to restore order in Hong Kong.
In the meantime, after US exempt some Chinese products from its tariffs recently and US President Donald Trump ruled out partial deal hopes, it was reported that China was preparing to import more soybeans and pork from the US as a sign of good will ahead of high-level talks.