Fundamental Comment

Gold drops as attention shifts to G20 talks

Gold drops as attention shifts to G20 talks

Gold prices fell during Thursday's trading, resuming its tumble for a second consecutive session, as investors turn their attention towards critical talks in the Group of 20 summit in Osaka, Japan.

after a strong leap recorded in previous sessions while investors await trade developments between China and the United States.

The precious metal continues to lose for the second consecutive day after landing yesterday for the first time in five sessions with the flat performance of the US dollar.

Gold prices plunged to $1404.60 an ounce, yet it found support after at the session’s low depicted at $1401 an ounce, noting that it lost more than one percent in the previous session.

The yellow metal dropped after reports pointing that Washington and Beijing are drafting an agreement that will help avoid the next round of tariffs on additional Chinese imports worth $300 billion.

Trump and Xi will meet on the sidelines of the G20 Summit, where markets are looking forward to an end of the year-long trade war between the world’s two biggest economies.

In the meantime, the dollar index, which measures the performance of six major currencies, has slipped about 0.03 percent at 95.71.

US president Donald Trump lashed out Fed Chair had Jerome Powell, describing his monetary policy as "madness," and expressed his wish that Mario Draghi, president of the European Central Bank, would be president of the Federal Reserve.

Powell’s recent remarks have reduced forecasts of interest rate cut next month, as he said the central bank is "insulated from short-term political pressures," defying US president Donald Trump's demands for a major cut in interest rates.

Among other precious metals, silver fell 0.4 percent to $15.18 an ounce, platinum dropped 0.4 percent to $811.13 an ounce and palladium slumped 0.2 percent to $1519.10 an ounce.

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