Gold prices dropped on Monday after opening on
a downside gap as optimism regarding a potential trade agreement between the
U.S. and China dented the appeal of the yellow metal as a safe haven asset.
The precious metal slipped to a low of $1381.74
an ounce, the lowest since June 20, while currently hovering around $1391.00 an
ounce.
Gold opened on a downside gap at $1391.52,
compared to Friday’s close at $1409.45, where the fall below $1400 triggered further
losses.
After Presidents Donald Trump and Xi Jinping
meeting at the Group of 20 Summit, the United States and China agreed on
Saturday to resume trade talks after Trump made concessions including not
imposing new tariffs on Chinese imports and easing restrictions on Huawei's technology
company.
According to Trump, the Chinese side has agreed
to make new unspecified purchases of US agricultural products and return to the
negotiating table.
“We’re right back on track,” Trump said, referring
to the agreement that have been made during an 80-minute meeting. “We’re
holding back on tariffs and they’re going to buy farm products,” alongside with
his tweet that, the meeting went “far better than expected,” he added.
“China is sincere about continuing negotiations
with the United States ... but negotiations should be equal and show mutual
respect,” according to Chinese foreign ministry.
After locking a weekly gain, the U.S. dollar
climbed to a high of 96.21, resuming its advance for a fifth straight session,
according to the dollar index.
U.S. stocks opened higher to set a new record
high on Monday, with technology stocks are among the top rises.
The Dow Jones Industrial Average surged 0.86 percent to 26,828.40, S&P
500 index climbed 1 percent to 2,970.78 and the Nasdaq Composite augmented 1.38
percent to 8,116.37, as of 14:15 GMT.