Gold prices inched lower Monday from a 5-week high hit earlier in the session, on profit-taking and as fears of a US-China trade war eased following reports of negotiations among two of the world’s leading economies.
Spot gold was down 0.1 percent at $1,346.01 per ounce, as of 0836 GMT. Earlier in the session, gold prices climbed as much as $1,350.76 per ounce, their highest since February 19.
US gold futures for April delivery slipped 0.3 percent to $1,346.3 per ounce.
“A mild early session bid tone to the bullion during Asian trade on Monday, and was soon extinguished by resting offers around $1,350, as participants looked to take profits ahead of key resistance levels,” MKS trader Sam Laughlin said in a note.
Market watchers got a breather when Wall Street Journal reported the United States and China have quietly started negotiating to improve US access to Chinese markets.
“Trump and China seem to be narrowing the list of tariffs and it might not be as disastrous as originally thought,” said a Singapore-based trader.
The United States asked China in a letter last week to cut the tariff on US autos, buy more US-made semiconductors and allow their firms greater access to the Chinese financial sector, the Wall Street Journal reported on Monday, citing unnamed sources.
Gold is sought as a store of value during times of political and financial uncertainty.