Gold rebounded from near a three-month low as optimism over a trade deal ebbed and traders looked for signs of a reversal in the recent downtrend in precious metals.

Spot gold climbed 0.6% to $1,464.27/oz by 10:48am in London. Prices fell to $1,445.70/oz on Tuesday, the lowest intraday level since Aug. 5. Spot silver advanced 1% to $16.9352/oz, most since Oct. 31.

President Donald Trump said the U.S. will increase tariffs on China in case the first step of a broader agreement isn’t reached, but also added that a “significant” phase one deal could happen soon.

Investors had been more optimistic of late about the likelihood of a deal between the world’s two largest economies, crimping demand for safe havens like gold. Bullion-backed exchange-traded funds saw outflows for five days in a row before Trump’s comments on Tuesday, the longest run of losses in two months.

Source : Bloomberg