Gold dropped after China said it had agreed with the U.S. to proportionally roll back tariffs on each other’s goods in phases, curbing demand for haven assets.
The amount of tariff relief that would come in the first phase, set to be signed in the coming weeks, will depend on the content of that agreement, Ministry of Commerce spokesman Gao Feng said Thursday without giving further details. The two sides had “constructive talks” in the past two weeks, he said.
If confirmed by the U.S., such an understanding could provide a road-map to a deal to end the trade war.
Spot gold as much as -0.4%, trades -0.2% at $1,487.40/oz by 7:47am in London.
Source : Bloomberg