Gold prices moved up Tuesday, giving up earlier losses after President Donald Trump criticized China and took a hard-line stance on Iran during his speech at the United Nations General Assembly, pressuring U.S. stocks and boosting the metal’s haven appeal.
Markets choked on Trump’s hawkish U.N. speech and that is positive for gold,” said Michael Armbruster, managing partner at Altavest.
Trump turned up pressure on China as Washington and Beijing seek a trade deal, and called on all countries to act to counter Iran’s regime. The speech fed risk-off sentiment in the market, pushing U.S. benchmark stock indexes broadly lower.
Gold for December delivery GCZ19, +0.57% on Comex was up $7.50, or 0.5%, at $1,539 an ounce, while December silver SIZ19, -0.30% pared earlier losses to trade 6.6 cents, or 0.4%, lower to $18.645 an ounce.
Before Trump’s speech, upbeat language out of Beijing and Washington over U.S.-China trade negotiations have served to dull gold’s haven appeal.
Treasury Secretary Steven Mnuchin late Monday told Fox Business Network that U.S.-China trade talks would resume in two weeks in Washington and said that deputy-level negotiations between the two countries had made some progress.
Beijing granted new tariff waivers to Chinese companies to buy soybeans and China bought about 600,000 metric tons Monday, following a similar purchase made earlier this month.
Meanwhile, the U.K. Brexit drama took another twist on Tuesday after the country’s top court ruled that Prime Minister Boris Johnson’s decision to suspend Parliament was illegal. It’s unclear how damaging the ruling will be for Johnson and his government’s effort to take Britain out of the European Union by Oct. 31 with or without an exit agreement with the European Union.
See: Decision to suspend Parliament ruled unlawful — live market reaction
In the U.S., the September Conference Board’s consumer confidence index slipped to 125.1, a three month low, from 133.3, as escalating trade tensions with China undermined confidence, underscoring the dangers of a conflict that has harmed key business sectors such as manufacturing and farming and poses a threat to a record U.S. economic expansion.
“Gold has fallen into a broad, near-term trading range between support at $1,500 and resistance above at $1,560,” said Tyler Richey, co-editor at Sevens Report Research.
“There are multiple influences on gold right now that could trigger a breakout or breakdown, but on a longer time frame the primary trend in gold turned higher this summer and we expect continued gains in the months and quarters ahead,” he said in his latest newsletter.
In other metals trade, October platinum PLV19, +0.41% rose 0.3% to $956.40 an ounce, while December palladium PAZ19, +1.17% rose 1% to $1,642.50 an ounce.
December copper HGZ19, -0.13% edged 0.2% lower to $2.6065 a pound.
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