Investing.com – Gold prices traded slightly higher on Friday while the U.S. dollar dropped after White House economic advisor Larry Kudlow confirmed that Chinese and U.S. officials will meet later in August to resume trade talks.
Gold Futures for December delivery rose 0.03% to $1,184.2 per troy ounce at 12:08AM ET (04:08 GMT) on the Comex division of the New York Mercantile Exchange, while the U.S. dollar index that tracks the greenback against six currencies slid by 0.03% to 96.45.
“The ‘risk on’ mood generated by news of the U.S.-China trade talks is weighing on the dollar, while prompting some buy backs of the euro, which has been hit earlier this week by Turkish concerns,” said Shin Kadota, senior strategist at Barclays (LON:BARC).
“Next week, the main focus will likely shift to U.S.-China trade issues from Turkey with the Chinese delegation visiting Washington and as $16 billion in new tariffs on Chinese good are due to take effect,” he added.
Meanwhile, the lira crisis also eased somewhat as Berat Albayrak, Turkey’s finance minister, described the current situation as a “market anomaly” and that he is confident Turkey would emerge stronger from the crisis.
However, some analysts remained concerned despite the minister’s speech. “Albayrak’s plan to stabilize Turkey’s economy invites skepticism. Fiscal policy to do heavy lifting via cuts. Little to say on interest rates. Thus Edogan’s dotty views on rate rises/inflation still prevail,” said Robert Ward of the Economist Intelligence Unit.