Gold declines as trade war fears ebb

Gold bars

Gold futures prices retreated on Tuesday as high-level trade talks between US and Chinese officials started, easing fears of a potential trade war.

During the session, gold futures for August delivery fell by 0.7%, or $22.70, to $3,332.20 per ounce.

Meanwhile, spot gold prices eased 0.35%, or $11.06, to $3,315.13 per ounce, as of 08:32 am KSA time.

The US Dollar Index gained 0.15% to 99.10 points, after touching 99.30 earlier.

Silver futures for July delivery dipped 0.3% to $36.69 per ounce, while spot palladium prices fell around 0.15% to $1,076.30. Spot platinum prices remained stable at $1,220.60.

Tim Waterer, Chief Market Analyst at KCM Trade Global, said the prospect of progress in trade talks between Washington and Beijing could reduce demand for safe-haven assets like gold, according to Reuters.

Markets are awaiting the release of US inflation data tomorrow, June 11, for further clues on the Federal Reserve’s monetary policy path.