Gold prices fell 1 percent yesterday as optimism in equity markets ahead of the signing of an interim US-China trade deal and lack of further escalation in Middle East tensions diminished bullion’s safe-haven appeal.
The US-China Phase 1 agreement is due to be signed at the White House on Wednesday.
Spot gold dipped 0,5 percentage to $1,553.60 per ounce as of 1246 GMT, having fallen 1 percent to $1 546,27 earlier in the session.
US gold futures fell 0,4 percent to $1 554,50.
“We are struggling (a) little bit with the details.
It’ll be quite interesting to see if there is any concrete guidance in the details of the phase-one deal,” said Julius Baer analyst Carsten Menke.
“Also, the news that the Chinese and the US would meet on semi-annual basis to discuss trade, I imagine was something which wasn’t expected by the market, and could be weighing on gold.”
A Wall Street Journal report said on Saturday Washington and Beijing had agreed to semi-annual talks aimed at pushing for reforms in both countries and resolving disputes.
The positive sentiment ahead of the planned signing boosted global equities, which were hovering just below record levels, while the US dollar gained against key rivals. — Reuters.