Mubasher: Gold declined earlier on Tuesday as progress in the trade talks between the US and China boosted Asian shares, while some support was lent from the dearth of clarity over the details of negotiations.
At 6:32 am GMT, spot gold was seen at $1,484.86 per ounce, while US gold futures stabilised close to $1,487.80 per ounce.
Trade talks between the world’s two biggest economies yielded some progress, Chinese Vice Foreign Minister Le Yucheng on Tuesday, while asserting that no problem could not be solved as long as there is a mutual respect between both sides.
Le’s remarks came after US President Donald Trump voiced optimism over a deal, while White House adviser Larry Kudlow said that tariffs on Chinese goods scheduled for next December could be withdrawn, should negotiations go well.
“Equities markets are in a risk-on mode, and there seems to be a lack of support for gold prices and precious metals,” CMC Markets analyst Margaret Yang Yan was quoted by Reuters.
Worries over the UK’s crashing of the European Union (EU) waned, while progress in the US-Sino trade negotiations offered a sigh of relief for market participants, Yan said.
In the UK, withdrawal agreement bill, the legislation which put Prime Minister Boris Johnson’s deal into a domestic law, will be debated and voted on Tuesday.
Nevertheless, the decline in prices “does not mean gold will continue to decline, because the market sees the [US Federal Reserve] cutting another 25 basis points in its October meeting,” Yan noted.