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Gold Sinks To 5-Week Low as U.S.-China Trade Hopes Lift Sentiment

Gold Sinks To 5-Week Low as U.S.-China Trade Hopes Lift Sentiment© Reuters.

Investing.com – Gold prices sank to a five-week low on Monday, as growing optimism that the United States and China would as early as this month lifted sentiment and reduced demand for safe-haven assets.

Comex fell to a session low of $1,286.05 a troy ounce, a level last seen on Jan. 25. It was last at $1,289.65 by 8:35AM ET (13:35 GMT), don $9.65, or around 0.75%.

Meanwhile, was trading at $1,288.34 per ounce, down $5.13, or roughly 0.4%.

U.S. President Donald Trump and Chinese President Xi Jinping could seal a formal trade deal at a summit around March 27 given progress in talks between the two countries, the Wall Street Journal reported on Sunday.

The world’s two biggest economies appear close to a deal that would roll back U.S. tariffs on at least $200 billion worth of Chinese goods, as Beijing makes pledges on structural economic changes and eliminates retaliatory tariffs on U.S. goods.

“Increasing risk appetite is clearly a little negative for gold,” Julius Baer analyst Carsten Menke said.

A also weighed on gold. The , which measures the greenback’s strength against a basket of six major currencies, was at 96.50, its highest in around a week.

Looking ahead, gold could “lose further ground” if data at the end of the week points to an improvement in the U.S. labor market, analysts at Commerzbank (DE:) said in a note.

After a recent batch of disappointing U.S. economic data, the , due on Friday, is the main event for markets this week, as investors look for further hints on the strength of the economy.

In other metals trading, dipped 1.1 cents, or about 0.1%, to trade at $15.16 a troy ounce.

Meanwhile, shed 0.7% to $1,496.90 an ounce, while dropped 2.3% to $843.65 an ounce.

— Reuters contributed to this report

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Source: Investing.com

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