LONDON: Gold prices fell on Monday as risk-on sentiment, bolstered by the upcoming signing of a preliminary US-China deal and signs of de-escalation in the Middle East, dampened demand for safe-haven bullion.
Spot gold fell 0.6 per cent to $1,552.02 per ounce by 11:31 a.m. EST (1631 GMT), having fallen 1pc to $1,546.27 earlier in the session. US gold futures fell 0.5pc to $1,552.60.
Gold, considered a safe investment during political and economic turmoil, rose to a near seven-year peak of $1,610.90 last week after a US drone strike killed a top Iranian commander in Baghdad and Iran launched missiles against US bases in Iraq in retaliation.
Reflecting investor sentiment, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust , fell 0.9pc to 874.52 tonnes on Friday, their lowest since Sept 16.
“Gold will remain vulnerable to spikes but could trend lower in the interim, with a break of $1,540 potentially triggering a move back towards $1,520,” OANDA analyst Craig Erlam said in a note.
Elsewhere, palladium rose 0.2pc to $2,122.29 an ounce. Silver was down 0.5pc at $18.01, while platinum fell 0.7pc to $971.65.
Published in Dawn, January 14th, 2020