Gold prices retreated after hitting their highest level in the month on Tuesday as the latest tweets from President Donald Trump calmed market tensions.
Spot gold traded at $1,299.55 an ounce, as of 12:27 GMT, after registering a top at $1,303.26, the highest level since April 11.
President Donald Trump has tweeted that a trade deal with China will be struck, “when the time is right,” giving hopes talks will resume during the next G20 meeting.
The precious metal saw extensive gains over the course of yesterday's session, supported by negative trade developments, as China retaliated by imposing tariffs on US imports, which triggered demand on safe havens.
The precious metal soared more than 1 percent on Monday, registering its biggest daily gain since February 19.
Asian stocks continued their losses on Tuesday after sharp declines during Monday night on Wall Street, as global equities wiped off more than $1 trillion on Monday.
U.S.-China trade tensions that have intensified late last week as U.S. President Donald Trump claimed that Beijing “broke the deal” and Beijing respond that it would not swallow any "bitter fruit" that harmed its interests.
However, the European stock market has recovered some of it loses at the start of today’s trading, with the benchmark Euro STOXX 600 currently showing 0.6% increase.
The U.S dollar index, which measures the
greenback against six major currencies, rose for a second straight session to
97.26, as of 13:33 GMT.