Gold prices fell on Tuesday's trading session as the U.S dollar strengthened and the trade concerns calmed, while traders await the speech of Federal Reserve’s Chairman Jerome Powell at Jackson Hole meeting.
As of 08:07 GMT, the precious metal spot contract fell by 0.08 percent at $1,510.65 per ounce, continuing the losses for three consecutive days, noting that gold prices lost about $12 per ounce by the end of yesterday’s session.
The reversal came after U.S. Commerce Secretary Wilbur Ross confirmed overnight that Washington would extend a license for another 90 days allowing China's Huawei Technologies to continue working with U.S. companies temporarily.
This news calmed trade tensions between the American and the Chinese sides, leading to a rise in stocks today at the expense of the safe-haven gold.
Moreover, the Fed’s annual meeting that will be starting on Thursday would be in focus since it may provide new evidence on when will be the next U.S. interest rate cut, where Powell’s speech on Friday would be the highlight of this week.
Investors will also remain alert to the Fed minutes of July meeting due on Wednesday, as it will provide insights about the Fed members directions during the latest interest rate slash.
As for other precious metals, silver prices rose 0.43 percent at $17.012 per ounce, platinum fell 0.09 percent at $855.80 per ounce and palladium traded at $1,476.55 per ounce after it witnessed 0.15 percent increase.
In the meantime, the dollar index which measures the performance of six major
currencies, rose 0.07 percent at 98.28.