Gold dipped to a more than five-week low on Monday as optimism around a possible trade deal between the United States and China helped whet risk appetite, while platinum shed 3 percent.
The world`s two largest economies appear close to striking a deal that would roll back U.S. tariffs on at least $200 billion worth of Chinese goods and possibly end their long-drawn trade spat.
Spot gold was down 0.7 percent at $1,284.10 per ounce by 9:44 a.m. EST (1444 GMT), having touched $1,282.5 earlier in the session, its lowest since Jan. 25.
The precious metal slipped below a key level of $1,300 on Friday.
Meanwhile, U.S. gold futures shed 1.1 percent to $1,285.1 per ounce, set to fall for a sixth consecutive session.
"There is a risk-on (sentiment) in the markets with the positive U.S.-China talk, so gold is naturally pulling back on strong equities, strong dollar and good geopolitical news," said Bob Haberkorn, senior market strategist at RJO Futures.
U.S. President Donald Trump and Chinese President Xi Jinping could reach a formal trade deal at a summit around March 27 given progress in talks between the two countries, the Wall Street Journal reported on Sunday.
Global markets cheered the news, indicating improved demand for riskier assets, in turn dampening demand for gold. [MKTS/GLOB]
The dollar index against a basket of other currencies was at a 10-day high, with rising U.S. Treasury yields translating into more demand for the currency. [USD/]
"It seems that investors` appetite for gold has suddenly vanished," ActivTrades chief analyst Carlo Alberto De Casa said in a note. "From a technical point of view, the fall below $1,300 is making space for further declines.
Indicative of sentiment, holdings of SPDR Gold Trust, the world`s largest gold-backed exchange-traded fund, fell 1.50 percent on Friday, their biggest one-day percentage fall since December 2016. [GOL/ETF]
Amongst other precious metals, platinum shed 3 percent to $832.67 an ounce.
Palladium was down 0.5 percent at $1,538.03.
However, Bank of America Merrill Lynch lifted its forecast for palladium, expecting it to hit a key $2,000 this year. The bank said it expects platinum prices to average $883 for the same period.
Earlier in the session, palladium rose to $1,560, within striking distance of an all-time peak of $1,565.09 scaled on Feb. 26 due to a sustained deficit for the autocatalyst metal.
Silver declined to an over two-month low at $15.07 an ounce, and was trading 0.6 percent lower at $15.13.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
![https://www.zeebiz.com/personal-finance/photo-gallery-sip-swp-monthly-pension-income-retirement-corpus-planning-calculator-inr-rs-20000-monthly-investment-for-15-years-inr-99000-monthly-return-for-42-years-313283](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316973-rupee-pixabay-take-1.jpg?itok=02-hJh59)
SIP+SWP: Rs 20,000 monthly SIP for 16 years to get Rs 99,000 monthly income for 42 years; how is it possible?
![https://www.zeebiz.com/market-news/news-bajaj-finserv-rvnl-borosil-renewables-carysil-railtel-corporation-stocks-to-buy-hdfc-securities-recommendation-picks-target-stop-loss-bse-nse-313386](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/317091-26.jpg?itok=gE1cWt7z)
RVNL, Bajaj Finserv and 5 more: Brokerage recommends buying these 7 stocks for up to 3 months | Check target, stop loss
![https://www.zeebiz.com/personal-finance/photo-gallery-nps-vs-ups-vs-ops-monthly-pension-income-retirement-corpus-calculator-what-will-be-your-pension-on-inr-rs-10000-contribution-for-35-years-expert-calculations-313361](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/317060-rupee-pixabay-take-2.jpg?itok=cOVdof_v)
NPS vs UPS vs OPS: What will be your monthly pension if you contribute Rs 10,000 monthly for 35 years? Get expert calculations
![https://www.zeebiz.com/personal-finance/photo-gallery-top-7-etf-sip-mutual-funds-in-5-years-calculator-how-inr-rs-21000-monthly-investment-has-grown-in-nifty-sp-bse-next-50-cpse-uti-icici-pru-nippon-india-motilal-oswal-bharat-22-nift-mid-infra-313306](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316994-indian-currency-pixabay-take-1.jpg?itok=JURVEkst)
Top 7 ETF Mutual Funds With Highest SIP Returns in 5 Years: How Rs 21,000 monthly SIP has grown in each ETF over the years
![https://www.zeebiz.com/personal-finance/photo-gallery-sbi-senior-citizen-fd-fixed-deposit-latest-interest-rate-2024-calculator-what-be-maturity-amount-with-return-on-investments-of-inr-900000-lakh-in-1-3-5-year-guaranteed-return-scheme-retirement-planning-313221](https://cdn.zeebiz.com/sites/default/files/styles/zeebiz_700x394/public/2024/09/06/316909-note-coin-pixabay-take-1.jpg?itok=3RPKcBYE)
SBI Senior Citizen FD Rates 2024: What you can get if you invest Rs 3 lakh, Rs 5 lakh, Rs 7 lakh, and Rs 9 lakh in 1-, 3-, and 5-year FDs
09:00 PM IST