WASHINGTON (dpa-AFX) - Gold prices fell sharply on Monday amid improvement in risk appetite after the Trump administration 'indefinitely suspended' tariffs on all Mexican goods and data showed China's exports unexpectedly returned to growth in May despite higher U.S. tariffs.
The Mexican peso rallied more than two percent after the Trump administration announced it would drop plans for tariffs on Mexico in return for more stringent efforts to control illegal border crossings.
China's exports grew 1.1 percent last month after falling 2.7 percent in April, according to customs data. Analysts had expected a 3.8 percent decline.
Spot gold shed 0.9 percent to $1,328.56 per ounce, after hitting its highest level since April 19, 2018 at $1,348.08 an ounce in the previous session. U.S. gold futures were down over 1 percent at $1,332.65 an ounce.
A stronger dollar also weighed on gold prices. The U.S. dollar rose across the board after succumbing to selling pressure on Friday following weaker-than-expected jobs report.
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