Mubasher: Gold prices slid to their lowest levels in over three weeks on Tuesday as fading worries about a global economic slowdown pushed equities to their highest peak in many months, dampening the yellow metal’s safe-haven appeal, according to Reuters.

By 9:55 am GMT, spot gold was down 0.26% to $1,290.80 per ounce, after hitting earlier $1,284.76 per ounce, the lowest since 7 March, while US gold futures inched down 0.06% to $1,287 per ounce.

“Concerns we saw emerge in the past few weeks around economic growth has certainly eased and that shift [in investing appetite] in the past day or two resulted in little bit of selling in gold market,” Australia and New Zealand (ANZ) bank analyst Daniel Hynes was quoted by the news agency as saying.

Most of the sentiment change arose from positive figures from China over the weekend, Hynes said.

Solid manufacturing data from the US and China, the world’s two largest economies, stoked a big sell-off in US bonds on Monday, which in turn supported Asian shares to their highest levels in seven months, Reuters noted.

Investors are now anticipating the US non-farm payroll report to be released on Friday, for it would offer more insight in the economic performance.

Markets focus now on the trade negotiations between the US and China, which are due to proceed later this week in Washington.

Strong payroll data, which would boost the US dollar, and positive developments from trade talks would fuel risk-taking sentiment among investors, both are bearish factors for gold.

The US dollar index, which traces the greenback against a basket of six major peers, was close to its three-week high reached last session.

By 9:56 am GMT, the index rose 0.19% to 97.4130.