Gold prices fell further on Thursday, as easing trade tensions dented demand for safe-haven assets, overshadowing support from a weaker dollar.
Spot gold was down 0.2% at $3,379.69 per ounce, as of 0534 GMT, after dropping 1.3% in the previous session. U.S. gold futures eased 0.4% to $3,385.40.
"Yesterday, gold prices were seen building up for the next bullish run until the news came out on trade front, triggering some profit-taking," said Brian Lan, managing director at GoldSilver Central, Singapore.
"We've seen the dollar has also weakened quite a bit, and of course, this also supports gold. So, I think this is a small retracement at this moment. We are, in fact, still quite bullish on gold."
Signalling progress on the tariff front, U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports.
The European Union and the United States are nearing an agreement that would impose 15% tariffs on European imports, while waiving duties on some items, according to officials from the European Commission.
Risk sentiment in the wider financial markets rose on the back of progress in trade talks and hopes that more deals could be in the offering.
Offering support to gold, the U.S. dollar index (.DXY), opens new tab fell to a more than two-week low, making greenback-priced bullion less expensive for other currency holders.
Investors were also looking forward to a rate decision from the European Central Bank due later in the day.
The U.S. weekly jobless claims numbers due on Thursday and S&P Global's flash PMI data will be in focus to gauge economic health ahead of the Federal Reserve's monetary policy decision next week.
Spot silver slipped 0.6% to $39.04 per ounce, platinum was steady at $1,410.92 and palladium dipped 0.9% to $1,266.41.
Source: Reuters
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data promp...
Gold prices strengthened on Wednesday, supported by a weaker US dollar and falling US bond yields after the latest economic data reinforced the narrative that the Federal Reserve is likely to continue...
Gold experienced a slight correction in the European session on Tuesday (February 10th), but remained above $5,000/oz as the market held its breath ahead of a series of US data that could alter intere...
Gold held above the psychological $5,000 level at the start of the week, supported by a combination of factors that are "right" for the precious metal : physical demand from China, expectations of low...
Gold prices are still struggling to turn an intraday rebound into a sustained rally. After briefly falling to $4,654 (a four day low) and rebounding, prices were again rejected near $4,900. In the Eur...
Oil prices stabilized on Thursday (February 12th), as the market reassigned a risk premium to US-Iran tensions despite US inventory data showing swelling domestic supplies. This movement confirms one thing: geopolitical headlines are still more...
Gold prices weakened slightly on Thursday (February 12th), as more solid US employment data reduced market confidence in an imminent Federal Reserve interest rate cut. The strong employment data prompted market participants to shift expectations of...
The Hang Seng Index reversed its downward trend in Hong Kong on Thursday (February 12th), weakening by around 0.9% to around 27,000 after a strong session earlier. This decline halted the momentum of the short term rally, as investors began to...