Gold prices fell more than 1% on Monday as easing trade tensions between the United States and China increased investors’ risk appetite, reducing demand for safe-haven assets like gold. A stronger US dollar also contributed to the decline.
By 0220 GMT, spot gold was down 1.4% at $3,272.89 per ounce, after hitting a record high of $3,500.05 on April 22. US gold futures decreased by 0.4% to $3,283.70 an ounce, reports Al-Rai daily.
The US dollar rose 0.3% against a basket of currencies, making gold more expensive for holders of other currencies.
Senior market analyst Tim Waterer of KCM Trade commented, “Financial markets, particularly risk assets, appear more optimistic about the tariff situation compared to early April.”
He also noted that comments from the White House about the potential for a US-China trade agreement have reduced the demand for safe assets like gold.
