Mubasher: Gold prices extended their drop for the fourth consecutive session on Tuesday, as risk-taking appetite was fanned by recent positive economic data and signs that US-Sino trade negotiations are yielding progress, Reuters said.

By 9:55 am GMT, spot gold fell 0.40% to $1,286.10 per ounce, while US gold futures declined 0.32% to $1,283.78 per ounce.

China reported last Friday better-than-expected climb in credit and exports last March, which mollified worries over the economic growth momentum.

The drag on the yellow metal came mainly from upbeat economic figures “for countries such as China for example, things have turned around a fair bit,” Hong Kong-based UBS Wealth Management analyst Dominic Schneider was quoted by Reuters.

In the same vein, labour data from the US last week also gave a push to sentiment, allaying fears that the world’s biggest economy was slowing down. The number of applied jobless claims hit their lowest level in 49 years and half last week.

Hopes about the trade negotiations between the world’s two biggest economies also lent a support for riskier assets, while weighing on safe-haven sentiment. Asian stocks hovered near nine-month peak on prospects of a stable Chinese economy, according to Reuters.

This came on the back of another improvement in the trade talks between Washington and Beijing, after US Treasury Secretary Steve Mnuchin told Fox Business Network on Monday that both sides were making “a lot of progress.”

Another drag on gold was the 10-year Treasury yields, which recovered a bit from their lowest levels seen last March, despite a decline on Monday, UBS Wealth Management’s Schneider said.

Currently, market participants are anticipating data on Eurozone and China, which would give more insight into the global economic health.