Gold Prices Slip, Stocks Rebound as Trade Tension Takes a Breather

© Reuters.  © Reuters. – Prices of the safe-haven slipped on Tuesday in Asia, while stock markets rebounded as traders cheered a temporary reprieve in U.S.- trade tensions surrounding Chinese telecommunications giant Huawei.

for June delivery, traded on the Comex division of the , were down 0.2% to $1,275.05 by 1:22 ET (05:22 GMT).

The fall in gold prices came after the U.S. said overnight that will temporarily allow Huawei to purchase U.S.-made goods for at least 90 days.

“The tension between and China may ease slightly today after officials said it would grant 90-day reprieve from penalties to Huawei and its subsidiaries, ” analysts at OCBC Treasury Research wrote in a morning note.

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The U.S.-China trade war has been one of the pillars of support for gold this year as investors used the yellow metal as a safe haven in times of both and political troubles.

Asian markets traded mostly higher on Tuesday, with China’s and the SZSE Component gaining 1.3% and 2.2% respectively.

The precious metal was also pressured by the rising , which received some support from data that showed U.S. consumer sentiment jumped to a 15-year high in early May.

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