Gold Prices Drop As "Phase One" US-China Trade Deal Lifts Appeal For Riskier Assets

In the global markets, gold price in Monday's trade fell as easing tension around long-bruising US-China trade war with the announcement of an agreement between the two nations on an interim deal, lifted the appeal for riskier bets.

Gold Prices Drop As Phase One US-China Trade Deal Lifts Riskier Assets Appeal

Spot gold hovered lower by 0.1% to $1473.88 per ounce as of 0050 GMT. Also, US gold futures traded lower by 0.2% to $1478.6.

While the "phase one" trade deal was announced on Friday, its official signing is still pending. And on Sunday Robert Lighthizer, the US trade representation said that exports to China would double in the next two years. And amid trade deal, the US has shelved off some of the tariffs on Chinese goods that were to become effective from December 15. Meanwhile, custom tariff commission of China State Council said that it has also done away with its plan to levy additional tariffs on some of the US goods.

Back home, on the MCX gold traded with gains of 0.25% or Rs. 94 at Rs. 37,867 per 10 gm, defying sentiment in the global markets. In line, silver also has gained 0.65% or Rs. 288 and is quoting at Rs. 44,414 per kg.

Last week, jewellers and dealers in gold provided discount on the back of abundant supply and sagging wedding season demand. Elsewhere in Asia, demand is expected to get a boost ahead of Christmas and New year festivities.

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