Image credit: Getty Images
Gold prices declined on Tuesday, hurt by an uptick in the US dollar as market participants awaited details from the second day of trade talks between the US and China in London.
Spot gold fell 0.6 per cent to $3,307.72 an ounce, as of 0502 GMT. US gold futures slipped 0.8 per cent to $3,327.50.
Read-Gold set for worst drop in six months: Find out why
The dollar index rose 0.3 per cent against its rivals, making gold more expensive for other currency holders.
The trade talks between the world’s two largest economies encompass issues ranging from tariffs to rare earth metals restrictions.
“With US-China trade talks still in the works, gold is trading reservedly until we see any progress is made between the two global superpowers,” said Tim Waterer, chief market analyst at KCM Trade.
US President Donald Trump said his administration was “doing well” in the negotiations.
Last month, both sides agreed to a temporary pause in tariffs against each other, offering some relief to financial markets.
Data from China showed export growth slowed to a three-month low in May as US tariffs affected shipments, while factory-gate deflation worsened to its deepest level in two years.
Meanwhile, US inflation data, due on Wednesday, could give investors more guidance on the US Federal Reserve’s monetary policy path.
“If CPI has ticked marginally higher, that would be an expected result, but if it jumps, then that could raise some alarm bells for investors, and any resulting flight to safety could help the gold price,” Waterer said.
Gold gains appeal during times of geopolitical and economic uncertainty and tends to do well when interest rates are low.
Elsewhere, spot silver was down 0.5 per cent to $36.52 per ounce, platinum was flat at $1,219.65, while palladium gained 0.4 per cent to $1,078.94.
