Gold prices inched lower on Monday as investors moved to riskier assets following the announcement of an interim deal between the United States and China that cooled a 17-month-old trade dispute.
Spot gold was down 0.1 per cent at $1,473.88 per ounce, as of 0050 GMT. US gold futures were down 0.2 per cent at $1,478.60.
The “phase one” trade agreement was announced on Friday and on Sunday US Trade Representative Robert Lighthizer said US exports to China will nearly double over the next two years although officials are yet to decide a date to sign the agreement.
TARIFFS IN CHINA
The United States suspended some tariffs on Chinese goods that was due to go into effect on Sunday, while China State Council’s customs tariff commission said it had dropped its plan for additional tariffs on some US goods.
Asian shares rose as investors breathed a sigh of relief after a thaw in tariff war.
The US economy is doing well and looks set to stay that way next year, two top Federal Reserve policymakers said on Friday, remarks that suggest they are content to leave interest rates where they are However, data from US showed on Friday retail sales increased less than expected in November as Americans cut back on discretionary spending despite a strong labour market.
In the UK, British Prime Minister Boris Johnson will “get Brexit done” by Jan. 31 and then agree to a new trade deal with the European Union by the end of 2020, cabinet office minister Michael Gove said on Sunday.
Speculators slashed their bullish positions in COMEX gold in the week to Dec. 10, data showed.
INDIAN GOLD MARKET
Gold dealers in India offered a discount last week due to plentiful supplies and slack demand during the wedding season, with other regions in Asia expecting improvement in buying ahead of the Christmas and Chinese New Year festivities.
PALLADIU -PLATINUM -SILVER MARKETS
Elsewhere, Palladium rose 0.6 per cent to $1,941.09 an ounce, silver shed 0.1 per cent to $16.92 per ounce, while platinum fell 0.2 per cent to $926.08.