Spot Gold extended losses, while plumbing a fresh 5-week low of $3,120.76 on Thursday, as easing US-China trade tensions weighed on the safe-haven allure of the metal.
During high-profile trade talks in Switzerland over the past weekend, the US and China agreed to significantly lower tariffs, which alleviated global trade anxiety.
US tariffs on Chinese imports will be reduced from 145% to 30%, while China’s levies on US imports will be cut from 125% to 10%.
In the meantime, market players now awaited the US producer inflation, retail sales and initial jobless claims data prints for more cues on macroeconomic conditions and the Federal Reserve’s future policy path.
“The outlook for intraday today is weak for the yellow metal as the positive talks between the U.S. and China has eroded safe haven appeal,” Jigar Trivedi, senior commodity analyst at Reliance Securities, was quoted as saying by Reuters.
“The dollar index is making an attempt to rebound and in case the U.S. posts better retail sales and PPI data, there could be more pain in the yellow metal.”
Federal Reserve Chair Jerome Powell is also expected to speak later today.
About 50 basis points of Fed rate cuts by year-end are now priced in, as early as October.
Spot Gold was last down 1.00% on the day to trade at $3,145.68 per troy ounce.
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