Gold Trades Lower as Markets Turn Optimistic About US-China Trade Deal

Gold prices eased lower early on Monday, trading bearish as the market sentiment improved on the announcement of the Phase 1 of a US-China

Gold - XAU/USD

Gold prices eased lower early on Monday, trading bearish as the market sentiment improved on the announcement of the Phase 1 of a US-China trade deal late last week. At the time of writing, GOLD is trading at a little above $1,486.

After the high level trade talks between US and China concluded. US President Donald Trump presented the proposal for the first phase of a trade deal between the two nations aimed at diffusing the trade war that has plagued global financial markets for more than a year now.

The optimism surrounding a possible end to the trade war diminished the appeal for safe haven assets like gold, causing the precious metal to lose more than 1% on Friday’s trading sessions. For now, the risk-on sentiment is back in markets, with stock markets climbing higher while the dollar is also strengthening against major peers.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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