Gold falls as positive US-China talks hamper safe-haven appeal
Gold slipped on Monday as positive U.S.-China trade talks alleviated market fears, leading investors to shift from safe-haven assets towards riskier investments.
Spot gold fell 1.4% to $3,277.34 an ounce, as of 0432 GMT. U.S. gold futures lost 1.9% to $3,281.70.
"The dollar index has advanced as the Trump administration touted progress in trade negotiations, with China following negotiations over the weekend in Switzerland which weighed on gold prices," said Jigar Trivedi, senior commodity analyst at Reliance Securities.
The U.S. and China ended high-stakes trade talks on a positive note on Sunday, with U.S. officials touting a "deal" to reduce the U.S. trade deficit, while Chinese officials said they had reached "important consensus".
Chinese Vice Premier He Lifeng said a joint statement would be released in Geneva on Monday.
The U.S. and China imposed tit-for-tat tariffs on each other last month, triggering a trade war that fuelled fears of global recession.
The U.S. will be left with higher tariffs once the dust settles from President Donald Trump's trade negotiations, a majority of the current and former Trump advisers Reuters spoke to said.
Traders are also eyeing release of U.S. Consumer Price Index on Tuesday for fresh signals on the Fed's monetary policy trajectory.
"In the near term, gold possibly continue to decline as the dollar could appreciate and amid reducing geopolitical risk the haven demand too may drop hence, the yellow metal may decline to $3,200/oz in the near term," Trivedi added.
Spot silver gained 0.4% to $32.84 an ounce, platinum rose 0.7% to $1,001.90 and palladium firmed 0.6% to $981.20.
Source: Reuters
