Mubasher: Gold traded lower on Tuesday, as a stronger dollar contained the yellow metal’s upside, while more prospects of progress in the trade negotiations between the US and China lent support to equity markets, according to Reuters.

By 11:08 am GMT, spot gold fell by 0.25% to $1,468.77 per ounce, having hit earlier $1,458.50 per ounce, its lowest since 6 August, whereas US gold futures ticked up by 0.07% to $1,473.90 per ounce.

The US dollar rose to its highest level since more than two years, as investors were looking for US manufacturing figures for September to determine the Federal Reserve’s next move to boost growth.

The dollar index, which traces the greenback against six major peers, inched up by 0.09% to 99.4650.

Asian equity markets edged up as some investors hoped the fourth quarter will see any progress towards a resolution to the trade conflict between the world’s two biggest economies.

“Gold is likely to stay volatile ahead of the October trade talks,” Geojit Financial Services commodity research head Hareesh V was quoted by Reuters.

China and the US are scheduled to resume high-level trade talks next week in Washington, and while the dispute between both sides over trade and technology intensified, investors are still hoping for a compromise.