Gold prices fell yesterday as risk-on sentiment, bolstered by the upcoming signing of a preliminary US – China deal and signs of de-escalation in the Middle East, dampened demand for safe-haven bullion.
Spot gold fell 0,8percent to $1 549,50 per ounce by 1:50p.m. EST (1850 GMT), having fallen 1 percent to $1 546,27 earlier in the session.
US gold futures settled down 0,6 percentage at $1 550.60.
“You remove the risk of geo-political tensions rising and you don’t quite need gold to beef up your portfolio,” said Bart Melek, head of commodity strategies at TD Securities.
Stock markets around the world lingered just below record levels, buoyed by the expected signing of the Phase 1 US-China trade deal.
The trade agreement, due to be signed at the White House today, marks the first step towards ending an 18-month-long trade dispute between the world’s two largest economies. — Reuters.