Gold prices fell during Tuesday trading, hitting the lowest
level in three-and-a-half months, as investors await signs from U.S. President
Donald Trump's speech on the position of trade talks with China.
Investors will keep a close eye on Trump during his speech at
the Economic Club in New York later in the day, amid hopes of signing of a
partial trade deal between the U.S. and China.
As of 08:16 GMT, spot gold hovered around $1,450.85 an ounce,
where it hit the lowest at $1450.75. That’s near the lowest level since August
5.
Falling below support at $1450 may force gold prices to
experience a strong downside correction towards $1,400.
However, the precious metal has risen so far by more than 13
percent this year, touching the highest level at $1557 on September 4.
Last week, the Chinese ministry of commerce announced that
there was an agreement with the U.S. on eliminating tariffs exchanged
throughout the period of the trade war between them.
It seems that the impact of the trade talk’s developments is
the key factor for gold, as the metal ignored the continuing political unrest
and popular anti-government protests in Hong Kong.
The dollar index, which measures the currency's performance
against six major currencies, rose for the sixth time in seven sessions to
97.00.
For other precious metals, palladium rose by 0.36 percent to
$1,662.07 an ounce, after reaching its lowest level since October 10 in the
previous session, while platinum slumped 0.3 percent to $878.75 an ounce and silver
fell 0.45percent to $16.73 an ounce.
Later in the day, investors will also watch U.S. small business
confidence data are scheduled to be released later in the day.