Gold price nosedives at one week low on rising tension in Sino-US trade talks
Gold fell to its one week low on Monday as hopes the United States and China would reach a trade deal lifted appetite for riskier asset even as the dollar retreated.
Gold fell to its lowest in more than a week on Monday as hopes the United States and China would reach a trade deal lifted appetite for riskier asset even as the dollar retreated.
Spot gold had dipped 0.2 percent to $1,287.34 per ounce by 11:02 a.m. EDT (1502 GMT), off a low of $1,281.96, its lowest since April 4. US gold futures fell 0.4 percent to $1,290.60 an ounce.
US Treasury Secretary Steven Mnuchin said on Saturday he hoped Washington and Beijing were "close to the final round" of negotiations to resolve the trade dispute between the world`s two biggest economics. Signs the two countries were heading for a deal to end the bitter dispute - marked by tit-for-tat tariffs that have cost the two economies billions and rattled financial markets - lifted investor sentiment and dented demand safe-haven gold.
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"Overall, people are not enchanted by gold, they don`t see a lot of upside potential in it," said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York
US data last week showing import prices rose for a third straight month in March, coupled with positive Chinese export and euro zone industrial production numbers, assuaged some concerns over global growth, also limiting demand for gold.
On the technical front, prices fell below the 100-day moving average around $1,287, which traders said could be a bearish signal. The metal also broke below the key psychological $1,300 mark last week, pointing to a further negative bias.
"Gold is coming towards the support level of $1,280. People are anticipating that if gold dips in this level and the buyers step back in, it might create a short-term bottom, making it an opportunistic time to start pursuing gold," said Michael Matousek, head trader at US Global Investors.
"Overall, this week is going to be really slow in terms of volume, as the prices will fluctuate; it will seem a little more volatile because there will be less market participants."
Spot platinum fell 0.5 percent to $881.61 per ounce and palladium fell 0.7 percent to $1,362.60 per ounce.
Silver was 0.2 percent lower at $14.92 an ounce, after touching its lowest since Dec. 26 at $14.81.
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