Gold price nosedives at one week low on rising tension in Sino-US trade talks
Gold fell to its one week low on Monday as hopes the United States and China would reach a trade deal lifted appetite for riskier asset even as the dollar retreated.
Gold fell to its lowest in more than a week on Monday as hopes the United States and China would reach a trade deal lifted appetite for riskier asset even as the dollar retreated.
Spot gold had dipped 0.2 percent to $1,287.34 per ounce by 11:02 a.m. EDT (1502 GMT), off a low of $1,281.96, its lowest since April 4. US gold futures fell 0.4 percent to $1,290.60 an ounce.
US Treasury Secretary Steven Mnuchin said on Saturday he hoped Washington and Beijing were "close to the final round" of negotiations to resolve the trade dispute between the world`s two biggest economics. Signs the two countries were heading for a deal to end the bitter dispute - marked by tit-for-tat tariffs that have cost the two economies billions and rattled financial markets - lifted investor sentiment and dented demand safe-haven gold.
See Zee Business Live TV streaming below:
"Overall, people are not enchanted by gold, they don`t see a lot of upside potential in it," said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York
US data last week showing import prices rose for a third straight month in March, coupled with positive Chinese export and euro zone industrial production numbers, assuaged some concerns over global growth, also limiting demand for gold.
On the technical front, prices fell below the 100-day moving average around $1,287, which traders said could be a bearish signal. The metal also broke below the key psychological $1,300 mark last week, pointing to a further negative bias.
"Gold is coming towards the support level of $1,280. People are anticipating that if gold dips in this level and the buyers step back in, it might create a short-term bottom, making it an opportunistic time to start pursuing gold," said Michael Matousek, head trader at US Global Investors.
"Overall, this week is going to be really slow in terms of volume, as the prices will fluctuate; it will seem a little more volatile because there will be less market participants."
Spot platinum fell 0.5 percent to $881.61 per ounce and palladium fell 0.7 percent to $1,362.60 per ounce.
Silver was 0.2 percent lower at $14.92 an ounce, after touching its lowest since Dec. 26 at $14.81.
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
Power of Compounding: How many years will it take to reach Rs 3 crore corpus if your monthly SIP is Rs 4,000, Rs 5,000, or Rs 6,000
Power of Compounding: Salary Rs 25,000 per month; is it possible to create over Rs 2.60 crore corpus; understand it through calculations
Liquor stock under Rs 300: Can this smallcap scrip double your money in 1-2 years? Check targets by Anil Singhvi
Reduce Home Loan EMI vs Reduce Tenure: Rs 75 lakh, 25-year loan; which option can save Rs 25 lakh and 64 months and how? Know here
11:28 PM IST