Gold prices drop as US-China deal eases tensions
Gold retreated on Monday as optimism about a United States-China trade agreement diminished the appeal for the precious metal. Prices fell after a record rally that analysts said had advanced too rapidly, with MCX gold opening 0.77 percent lower at 122,500 rupees per 10 grams.
Spot gold dropped 0.7 percent to $4,083.92 an ounce in Singapore after declining 3.3 percent last week. The metal had reached an all-time high above $4,380 an ounce before investors began taking profits from gains that exceeded 55 percent this year.
President Donald Trump’s diplomatic visit to the region raised expectations for a breakthrough agreement between Washington and Beijing. Officials from both nations indicated they were near completing a comprehensive deal that could reduce geopolitical tensions.
Silver prices opened 3.09 percent lower at 142,910 rupees per kilogram on the MCX. Federal Reserve policy decisions and technology company earnings reports will influence bullion markets this week as traders watch trade negotiations.
