Mubasher: Gold prices edged down on Tuesday due to an improvement in the trade rhetoric between the US and China, according to Reuters.

However, the precious metal remained close to the two-week high recorded in the prior session on the back of worries about an incoming global slowdown and heightened tensions in the Middle East.

By 9:42 am GMT, spot gold inched down by 0.08% to $1,521.06 per ounce, having hit $1,526.80 per ounce, its highest level since 6 September, while US gold futures fell by 0.29% to $1,527 per ounce.

Talking to the Fox Business Network, US Treasury Secretary Steven Mnuchin stated that discussions with Beijing would be held in two weeks, giving a boost to the dollar and global stocks.

“Both [of the US and China] have given some indication again that an agreement might be reached and that is affecting gold a bit in a negative way but mostly it is trading in sidelines,” CMC Markets chief strategist Michael McCarthy was quoted by Reuters as saying.

However, McCarthy added that if the talks collapse again, gold will have support.

Worries mounted over a slowdown in global economy due to the business survey report out of the Eurozone and Japan this week. Most specifically, in Germany, Europe’s growth powerhouse, manufacturing recession worsened further.

Moreover, geopolitical tensions in the Middle East have escalated since an attack on Saudi Arabia’s oil sites earlier this month, the European major powers, including the UK, Germany and France supporting the US in laying the attack at the doors of Iran.

Furthermore, market participants focussed on a ruling by the UK Supreme Court over the suspension of the House of Commons this month.