Gold prices edge down as traders monitor US-China talks
Gold prices edged lower on Tuesday as traders closely monitored U.S.-China talks, the outcome of which could simmer down trade tensions and boost the global economy, lessening demand for safe-haven assets, while a rising U.S. dollar added pressure.
Spot gold fell 0.1% to $3,324.55 an ounce as of 1402 EDT (1802 GMT) and U.S. gold futures settled 0.3% lower at $3,343.40.
The dollar index rose 0.2% against its rivals, making gold more expensive for other currency holders.
"Over the last several sessions, we've seen gold retrace a bit off the recent highs, mostly done on the back of optimism in regards to the expectations of negotiations between China and the U.S., UK and Russia," said David Meger, director of metals trading at High Ridge Futures.
U.S. Commerce Secretary Howard Lutnick said the talks with China were going well and expected to last all day as the two sides met for a second day in London, seeking a breakthrough on export controls that have threatened a fresh rupture between the superpowers.
A trade deal could dampen gold's appeal as a safe haven, since it tends to thrive amidst geopolitical and economic uncertainty as a store of value.
"(Investors are) waiting for a pullback to happen, like around $3,100 an ounce, but right now it's just wait and see on what comes out of the China talks," said Bob Haberkorn, senior market strategist at RJO Futures.
Investors are also keenly awaiting U.S. Consumer Price Index data on Wednesday.
Spot silver was down 0.5% to $36.53 per ounce.
Source: Reuters
