On Thursday, the US and China reached a “phase 1” deal in principle. Officials are expected to delay the much-dreaded December 15 tariff hike which would see Washington impose over $160 billion worth of levies against Chinese-imported goods. Beijing also announced on the same day that it intends on purchasing $50 billion worth of US agricultural goods.
After falling by ₹145 yesterday, gold prices continued to decline for the second day today. Gold futures were trading at ₹37,490 per 10 gram, down by ₹54 or 0.14% after US President Donald Trump said Washington was close to a trade deal with China. So far this month, gold prices have dropped by around ₹500 per 10 gram at MCX.
Trade tensions remain high after President Donald Trump’s comments on Tuesday that a deal may await after the November 2020 Presidential elections.
Fresh comments are hitting the wires from the Chinese Foreign Ministry.
Mood in Beijing about trade deal is pessimistic, government source tells me. China troubled after Trump said no tariff rollback. (China thought both had agreed in principle.) Strategy now to talk but wait due to impeachment, US election. Also prioritize China economic support.
China’s economy has seen better days. Premier Li Keqiang has gone on a whistle-stop tour to cajole Communist Party cadres, as well as holding discussions and panel meetings with academics and economists.
An agreement between the United States and China to roll back existing tariffs as part of a “phase one” trade deal faces fierce internal opposition in the White House and from outside advisers, multiple sources familiar with the talks said.