Early on Monday, gold prices have slid to their lowest levels in the past week over cautious optimism of a US-China partial trade deal being signed within this year. At the time of writing, GOLD is trading at a little above $1,461.

Positive developments over the weekend have boosted the risk-on sentiment in global markets, causing Asian shares to edge higher even as the safe haven appeal of gold comes down. Gold is also trading weaker after strong economic data from the US helped strengthen the dollar, which shares a negative correlation with the precious metal.

Two key developments over the weekend have helped improve the market sentiment regarding the US-China trade war: one, assurance from China that it will work towards offering better IP protection, and two, US NSA Robert O’Brien’s recent remarks stating his hopes for the trade deal to be signed within 2019 itself.

However, gold is likely to remain in favor in the near future over escalating protests in Hong Kong and their possible impact on US-China relations. Markets remain tense over the possibility of US President Donald Trump signing the legislations supporting human rights of anti-government protesters into law, which could upset the fragile equation with China and could potentially have a spillover effect on trade negotiations as well.