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.