WASHINGTON (dpa-AFX) - Gold prices fell more than 1 percent on Monday as a temporary U.S.-China trade war truce dented safe-haven demand for the precious metal.
Spot gold fell 1.4 percent to $1,389.42 per ounce, while U.S. gold futures were down 1.5 percent at $1,392.45 an ounce.
Gold is hovering near its lowest level in more than a week while the U.S. dollar rallied after the U.S. and China agreed to restart trade talks and decided to not impose additional tariffs on each other's products.
The Unites States agreed to put off additional tariffs on Chinese goods indefinitely while removing some curbs on Huawei Technologies Co. buying high-tech equipment from the U.S.
In response, China agreed to make unspecified new purchases of U.S. farm products and return to the negotiating table.
The progress in trade talks made on the sidelines of G20 summit boosted investors' appetite for riskier assets while denting demand for safe-haven assets such as the gold and the yen.
China and the United States will face a long road before they can reach a deal to end their bitter trade war, with more fights ahead likely, Chinese state media reported on Sunday after the two sides said they would continue talks.
'Things are still very much up in the air,' the official China Daily said in an editorial.
Copyright RTT News/dpa-AFX
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