Spot Gold retreated to a one-week low of $3,250.74 on Monday, as optimism regarding the US-China trade negotiations led to an investor move from safe-haven assets toward riskier instruments.
The US and China held high-profile trade talks over the weekend, with officials from both countries indicating a positive outcome. Washington highlighted progress toward a deal, while Chinese officials said an “important consensus” had been reached.
Chinese Vice Premier He Lifeng said a joint statement was to be released on Monday.
“The dollar index has advanced as the Trump administration touted progress in trade negotiations with China following negotiations over the weekend in Switzerland which weighed on gold prices,” Jigar Trivedi, senior commodity analyst at Reliance Securities, was quoted as saying by Reuters.
Market players now awaited the key US CPI inflation data that may provide further clues over the Federal Reserve’s monetary policy path.
Cleveland Fed President Beth Hammack said on Friday the US central bank required more time to determine how the economy responded to the Trump administration’s tariffs before taking the appropriate action on interest rates.
Spot Gold was last down 2.15% on the day to trade at $3,253.77 per troy ounce.
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