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Gold is testing key price levels amid hopes for a deal between the US and China

Gold Prices

The price of gold is approaching a monthly low of $ 1,446 amid growing expectations for trade between the US and China. A recent change in the price of gold limits the risk of a decline in value as a resistance zone of $ 1,447, which acts as support.

US Trade Transaction – China

President Donald Trump has a tendency to lower tariffs. The ongoing shift in US trade policy, in turn, could turn into a global problem for the Federal Reserve. Hopes for an upcoming bargain can quickly fade. Weakness in global growth and the development of trade become an obstacle to the economy and create constant risks.

The Federal Open Market Committee is likely to take a break in the cycle of cutting rates since the current position of monetary policy will remain appropriate as long as the incoming economic information is in line with forecasts of moderate economic growth.

Fed futures reflect a 90% chance that the FOMC will hold the base interest rate at the last meeting in 2019, and a growing number of Fed officials may approve a wait-and-see approach in anticipation of the next interest rate decision of December 11, as the central bank seems in no hurry to cancel four rate hikes since 2018.

Deteriorating global growth prospects could lead to further isolation of the US economy in 2020, as many participants continue to view the downside risks associated with economic prospects as elevated.