Gold prices have slid lower on Friday over the possibility of the US and China getting ready to sign the phase one trade deal soon. At the time of writing, GOLD is trading at a little above $1,467.

Over the past few days, gold had been trading higher over rising concerns that the US could implement the next round of tariff hikes on Chinese imports on December 15, escalating trade tensions all over again. In the event of the US rolling out these tariffs, the US-China trade war could have continued until at least beyond the 2020 presidential elections, which would have worsened the global economic outlook into next year.

On Thursday, however, officials let it slip that both nations were getting ready to not only suspend more tariffs but also drive higher farm purchases from the US into China, which would lay the groundwork towards the partial trade deal.

The risk-on sentiment is back in the markets with Wall Street closing at a record high in the previous session while gold’s safe haven appeal started to diminish. Watch out for latest updates on the trade war and official confirmation from the US and China while trading the precious metal.