Gold prices have had a bearish start at the beginning of a brand new trading week early on Monday, over rising optimism in the markets surrounding the US-China phase one trade deal. At the time of writing, GOLD is trading at a little above $1,474.

Markets have opened with a risk-on sentiment after the US and China confirmed on Friday that they have managed to finalize the phase one deal, just before the next round of tariff hikes were to be announced on Chinese goods. The positive developments in the trade war diminished the safe haven appeal of gold and sent it lower.

On Sunday, US Trade Representative Robert Lighthizer offered more information on the key aspects of the deal, including how China has committed to increasing imports of farm products from the US in exchange for suspension of some tariffs and reduction in some others. China has also pledged to tighten US IP protection and curb forced technology transfers, key concerns that started the trade war in the first place.

Gold is also trading weaker on the back of optimistic economic data releases from both countries recently. While last week, the Fed signaled that the US economy is expected to see healthy growth in 2020, industrial production in China also saw a strong expansion, lending further support to the positive sentiment in global markets.