Investing.com - Gold prices rose on Monday in Asia on Monday as an attack on Saudi Arabia’s oil facilities last week reignited the yellow metal’s potential as a safe-haven against political risk.
Gold Futures for December delivery rose 0.6% to $1,523.75 by 12:10 AM ET (04:10 GMT).
Citing an unnamed Saudi official, the Wall Street Journal reported that a full recovery of Saudi Arabia’s oil output will take longer than the kingdom had promised.
The official noted that the situation is not “as rosy as you might think.”
The precious metal dropped last week as traders were disappointed with another modest rate cut delivered by the U.S. Federal Reserve. Some were hoping the Fed would make a half-point cut.
The Fed has two more policy meetings before the end of 2019, in October and December, but there is no certainty it will cut rates again.
Meanwhile, Sino-U.S. trade developments are also expected to be directional drivers in the near future as officials from the two sides are set to meet in early October.
State-backed media group Yicai reported on Sunday that trade discussions held last week achieved a “good outcome,” although uncertainty over a trade deal remained, as Chinese officials on Friday unexpectedly cancelled planned visits to farms in Montana and Nebraska.
The cancellation pushed U.S. stocks lower on Friday, while Chinese stocks dropped more than 1% today.
Yicai noted in its article that the farm visit had nothing to do with trade talks, and that the U.S. has said it will send out another invite another time.