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Gold retreats to 2018 low after US-China tariffs suspended

Gold retreats to 2018 low after US-China tariffs suspended

Mubasher: Gold prices on Monday extended their fall, sliding to their lowest level reached so far this year, after strained US-China trade ties eased.

By 10:37 am GMT, gold futures fell 0.60% to $1,283.60 per ounce, while spot gold dropped 0.62% to $1,284.96 per ounce.

Monday's declines come off a weekly drop of 2.2% for the precious metal's futures. Last week, gold closed at $1,289.40 per ounce, the lowest settlement for an active contract since December.

In the meantime, the US dollar index added 0.27% to reach 93.8910.

US treasury secretary Steven Mnuchin on Sunday noted that the US administration had agreed with China to “put the trade war on hold,” delaying tariffs on Chinese imports to the US.

At the end of the trade talks in Washington last week, China was reported to have agreed to purchase significant amounts of US goods to reduce the trade deficit but did not agree to the US target of $200 billion.

In response, “market reaction has been very risk-positive and dollar-positive, driving Treasury yields back higher, gold into retreat, equity markets higher and the dollar also stronger,” Hantec Markets analyst Richard Perry told MarketWatch.