Gold opened the third quarter with a slump back below $1,400 an ounce after the U.S. and China agreed to a truce in their trade war, dealing a blow for now to havens that were bolstered in recent months by the long-running tensions as well as prospects for looser monetary policy.
Spot gold dropped as much as 1.8%, the biggest intraday fall in a year, to $1,384.06 an ounce, and was at $1,386.65 at 7:07 a.m. in London. Prices hit $1,439.21 on June 25, the highest since 2013, and rallied 8% last month. A gauge of the U.S. dollar rose 0.2% on Monday after sagging 1.6% in June.
Prices fell after Donald Trump and Xi Jinping’s meeting over the weekend, at which the leaders of the two largest economies agreed to resume negotiations. Still, the setback may be temporary as investors now train their focus on U.S. jobs data due Friday for clues on the Federal Reserve’s next move on policy.
Source : Bloomberg