WASHINGTON (dpa-AFX) - Gold prices fell sharply on Friday and headed for steep weekly losses as a 90-day U.S.-China trade truce improved investors' risk appetite and dented demand for safe-haven assets.
Spot gold fell nearly 1 percent to $3,209.01 per ounce in early European trading and was set for a weekly loss of nearly 4 percent. U.S. gold futures were down 0.4 percent at $3,212.99.
Last weekend, the U.S. and China agreed to a 90-day pause on their trade war in which the punitive, reciprocal tariffs were rolled back to 30 percent by the U.S. and 10 percent by China.
The deal along with some relief in geopolitical tensions led to some recovery in the greenback against major currencies and dented gold's appeal as a safe-haven asset.
The dollar dipped alongside U.S. Treasury yields today after the release of disappointing U.S. economic data overnight.
Later in the New York session, trading may be influenced by a preliminary consumer sentiment reading along with reports on import and export prices and housing starts.
In a speech overnight, Fed Governor Michael Barr said the economy is on solid ground, but warned tariff-related supply-chain disruptions could lead to lower growth and higher inflation.
Separately, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon said a U.S. recession is still a live risk.
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