Gold slips to five-week low on US-China trade deal hopes
Investors are opting for riskier assets on signs that the US and China may avoid a protracted trade war, putting pressure on bullion
Bengaluru — Gold fell to the lowest in more than five weeks on Monday as the dollar held firm and investors opted for riskier assets on hopes of a thaw in a trade dispute between the US and China. Spot gold slid 0.5% to $1,286.60 an ounce as of 10.48am GMT, having touched $1,285.65, its lowest since January 25 earlier in the session. US gold futures were down 0.9% to $1,288. Gold tumbled 2.6% last week, its biggest weekly fall in over one-and-a-half years. “Increasing risk appetite is clearly a little negative for gold,” Julius Baer analyst Carsten Menke said. “We saw quite a bit of selling on Friday as the dollar strengthened and that’s continuing today, putting some pressure on gold. The break below $1,300 (on Friday) also triggered some more selling from technical traders.” Global markets rose on expectations that the two largest economies in the world might stave off a drawn-out trade war. A source briefed on negotiations said the two countries were likely to reach a deal, rolli...
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