Gold prices rose on Monday, as United States President Donald Trump reiterated his call for a trade deal with China.
Spot gold prices increased by 0.59% to US$3,259.27 as of 4 pm (AEST).
The U.S. has imposed 145% tariffs on goods from China, with China adding a 125% reciprocal tariff.
Trump said in an NBC interview airing today that he would be willing to eventually lower tariffs on China, “because otherwise, you could never do business with them, and they want to do business very much.”
He also told reporters aboard Air Force One that U.S. officials were discussing a variety of issues with their Chinese counterparts. China’s government has repeatedly said that it is not currently negotiating a trade deal with the U.S., and that Trump and Chinese President Xi Jinping have not been in direct contact.
Meanwhile, the U.S. Federal Reserve will meet on Wednesday, and is likely to maintain interest rates.
“The labor report leaves little doubt that the FOMC will keep rates on hold this week, and the bar for cutting is now even higher for June,” said JPMorgan head of U.S. economics Michael Feroli.
“In a period of high uncertainty, with two-sided risks to the dual mandate, the Fed Committee will prefer to remain patient until there is more clarity in the outlook.”
The Bank of England, Norway’s Norges Bank, and Sweden’s Sveriges Riksbank are all set to meet this week. While the Bank of England is expected to cut rates to 4.25%, Norway and Sweden’s central banks are likely to maintain current rates.
