© Reuters. Investing.com – Gold prices fell sharply Thursday as demand for safe-havens plunged after U.S. officials talked up the chances of negotiating a trade deal with China, while dollar strength added to downside momentum.
for June delivery on the Comex division of the New York Mercantile Exchange fell by $11.20, or 0.84%, to $1,329.00 a troy ounce.
Gold prices hovered above two-week lows after Larry Kudlow, director of the White House National Economic Council, suggested the US was willing to strike a deal with Beijing.
“Our intention is not to punish anybody. Our intention is to open markets and investments and lower barriers — that’s the deal, Kudlow said”
Kudlow comments were in sharp contrast to that of White House trade adviser, Peter Navarro, who said Wednesday “The expectation is that at the end of 60 days there will be tariffs imposed.”
Also lowering sentiment on gold prices was a rebound in , supporting an uptick in the , as traders looked ahead to both nonfarm payrolls and a speech by Federal Reserve chair Jerome Powell due Friday.
Ahead of Fed chair Powell’s appearance, former Fed chair Janet Yellen echoed the Fed’s ongoing monetary policy narrative of “gradual” rate hikes and said low rates will continue as inflation remained in check.
In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to interest-bearing assets such as bonds.
In other precious metal trade, rose 0.56% to $16.34 a troy ounce, while fell 0.47% to $913.80 an ounce.
fell 1.78% to $3.064.
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Source: Investing.com
