Gold prices fell on Tuesday as market participants awaited further developments from the ongoing U.S.-China trade talks in London, with negotiations extending into a second day.
In Dubai, gold rates saw a slight decline, with 24-carat gold dropping by AED0.41 to settle at AED399.16. Similarly, 22-carat gold decreased in price, now at AED369.57. Additionally, 21-carat gold is priced at AED352.76, while 18-carat gold has reached AED302.37.
Spot gold fell 0.5 percent to $3,311.16 an ounce, as of 01:25 GMT (currently trading above $3,305). U.S. gold futures also decreased by 0.7 percent to $3,330.90 (now trading above $3,325). High-level trade discussions between U.S. and Chinese officials are stretching into a second day, covering issues such as tariffs and restrictions on rare earth elements.
Read more: Dubai 24-carat gold price today hits AED399.25 amid easing U.S.-China trade tensions
Positive progress
“With these key U.S.-China trade talks still in the works, gold is trading reservedly until we see what, if any, progress is made between the two global superpowers,” Reuters reported, citing Tim Waterer, chief market analyst at KCM Trade. U.S. President Donald Trump mentioned that his administration was “doing well” in the negotiations and noted positive reports from the talks. Last month, both sides agreed to a temporary pause on tariffs, which offered some relief to financial markets.
“If traders come away from the U.S.-China talks this week thinking that the two nations remain on track to achieve a broader trade deal, safe-haven demand for assets such as gold could ease.” Data from China revealed that export growth slowed to a three-month low in May as U.S. tariffs affected shipments, while factory-gate deflation worsened to its deepest level in two years.
Meanwhile, investors are now anticipating U.S. inflation data on Wednesday for further cues regarding the Federal Reserve‘s monetary policy path. “If CPI has ticked marginally higher, that would be an expected result, but if it jumps, then that could raise some alarm bells for investors, and any resulting flight to safety could help the gold price,” Waterer stated. Gold gains appeal during uncertain geopolitical and economic times and tends to perform well when interest rates are low.
Elsewhere, spot silver was down 0.6 percent to $36.51 per ounce, platinum dropped 0.8 percent to $1,210.46, while palladium fell 0.2 percent to $1,071.75.
