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Gold falls on waning US-Sino trade conflicts escalation fears

Gold falls on waning US-Sino trade conflicts escalation fears

Mubasher: Gold prices traded lower on Monday, as the dollar strengthened, while worries over an escalation of the trade conflict between the US and China waned, after Washington dismissed plans to block Chinese companies from American capital markets, Reuters reported.

By 12:11 pm GMT, spot gold fell by 0.78% to $1,485.33 per ounce, while US gold futures dropped by 1.08% to $1,490.10 per ounce.

The US Treasury Department spokeswoman Monica Crowley said that Washington is not currently weighing de-listing Chinese companies from US stock exchanges, Bloomberg reported.

This followed a Reuters report that the White House was contemplating de-listing Chinese firms from US markets, in what could be deemed a radical escalation in the protracted trade war.

While contradicting headlines related the trade conflict stirred confusion in the short term, “what investors do [in these situations] is quit their position in equities and switch to bond markets,” boosting in turn the US dollar, AxiTrader market strategist Stephen Innes was quoted by Reuters.

The US dollar index, which gauges the greenback against a basket of six major rivals, rose by 0.18% to 99.2900.

Moreover, investors are also looking for hints on further interest rate cuts by the Federal Reserve.

Philadelphia Fed Bank president Patrick Harker on Friday said he had opposed the September rate cut, while he urging that the US central bank should “hold firm” on rates.