By Anushree Mukherjee
Gold slipped on Monday as positive US-China trade talks alleviated market fears, leading investors to shift from safe-haven assets towards riskier investments.
Spot gold fell 1.4 percent to $3,277.34 an ounce. US gold futures lost 1.9 percent to $3,281.70.
“The dollar index has advanced as the Trump administration touted progress in trade negotiations, with China following negotiations over the weekend in Switzerland which weighed on gold prices,” said Jigar Trivedi, senior commodity analyst at Reliance Securities.
The US and China ended high-stakes trade talks on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said they had reached “important consensus”.
Chinese Vice Premier He Lifeng said a joint statement would be released in Geneva on Monday.
The US and China imposed tit-for-tat tariffs on each other last month, triggering a trade war that fuelled fears of global recession.
The US will be left with higher tariffs once the dust settles from President Donald Trump’s trade negotiations, a majority of the current and former Trump advisers Reuters spoke to said.
