Spot Gold slid below the $3,300 mark on Monday, extending Friday’s losses, since easing trade tensions between the US and China reduced the safe haven appeal of the yellow metal.
A firmer US Dollar was also weighing on the commodity.
The partial rollback of tariffs on some US imports by China was perceived as a positive step towards further de-escalation in US-China trade tensions.
US President Donald Trump said that trade negotiations with Chinese officials were underway, but China quickly knocked down such an assertion.
“It’s probably fair to say that financial markets and risk-assets in particular are feeling slightly better about the tariff picture now compared to the frantic first week in April,” KCM Trade Chief Market Analyst Tim Waterer was quoted as saying by Reuters.
“Comments last week from the White House have fueled optimism that a U.S.-China trade deal may eventuate, which has caused safe-haven demand for assets such as gold to subside.”
In the meantime, many participants in the International Monetary Fund and World Bank Spring Meetings claimed the Trump’s administration was still conflicted in its demands from trading partners, which faced tariffs.
The US Dollar Index was last up 0.15% to 99.734.
A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
Spot Gold was last down 1.10% on the day to trade at $3,282.89 per troy ounce.
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