Gold price hits two-week high following US-Mexico deal

London (Aug 28)  Gold touched a two-week high as investors weighed in Trump’s comments on trade negotiations with China, and an agreement was reached between the US and Mexico to replace the North American Free Trade Agreement.

 Bullion for immediate delivery was available at $1,213.70/oz (+0.2%) at 10:27am in London, the highest intra-day level since Aug 13, 2018.

“Bullion is consolidating above $1,200 and there are increasing chances that this rebound will continue, particularly if the greenback weakness goes on,” said Carlo Alberto De Casa, chief analyst at ActivTrades

“Gold, along with other commodities, witnessed a sharp rebound on dollar correction, however we don’t expect a sustained decline in the dollar owing to optimism about US economy and this will restrict gains in gold as well,” Kotak Commodities Services said in note.

 After the US-Mexico agreement, the focus will now be on Canada’s stance on revamping Nafta deal, it added.

Bloomberg