U.S. 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.
“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
U.S. 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.