Gold price falls as treasury yields rise on US-China trade talk optimism
Gold prices edged lower on Monday morning as signs of progress emerged in US-China trade talks helping Treasury yields to climb higher.
Gold prices fell on Monday morning to a one-week low as Treasury yields climbed high off the back of improved investor sentiment following positive signs from ongoing US-China trade talks.
Spot gold slid 0.3% to $1,286.74 per ounce, while gold futures for June fell as much as 0.6% to 1,287.29 an ounce.
US-China trade talks reach final lap
In signs that the ongoing US-China trade dispute is nearing a resolution, US Treasury Secretary Steven Mnuchin said that negotiations between the two countries were nearing their final lap.
‘Gold has clearly lost the upward trajectory that it was on, trying to find new supportive catalysts. We’ve seen continued positive murmuring on the trade negotiations in recent days,’ Capital Economics analyst Ross Strachan told Reuters.
‘That’s obviously a headwind for safe-haven gold,’ he added.
Global equities lifted by strong Chinese export data
The myriad of macroeconomic headwinds has helped gold prices surge in recent weeks, but the possibility of an end to the US-China trade talks and strong Chinese export data on Friday last week has given investors reason to be optimistic with global equities rallying.
‘The continued positiveness coming out of equity markets is acting as a drag on gold prices as people have liquidated their positions,’ Strachan said.
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