“Some people are disappointed because Trump didn’t gain much from the deal, compared to the huge uncertainty that he imposed on the US economy, farmers and workers.”
Bengaluru — Gold prices held steady on Thursday after the US and China signed a preliminary trade deal, as investors worried that a number of sore issues remained unresolved between the world’s two top economies.
The much-awaited Phase 1 trade deal was signed by US President Donald Trump and Chinese Vice-Premier Liu He on Wednesday, defusing an 18-month-long row that has roiled global markets. Analysts said the deal failed to address structural economic issues that led to the conflict, did not fully eliminate the tariffs that have slowed the global economy, and set hard-to-achieve purchase targets.
“No question the detente is favourable for risk, but the agreement won’t change the Federal Reserve’s outlook and if anything, it could lead chair Powell to cut rates as the economic impulse from the Phase 1 deal could be meek,” Stephen Innes, a market strategist at AxiTrader, said in a note.
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