Gold fell on Tuesday, erasing gains from earlier in the session, as a temporary reprieve from Washington for China’s Huawei rekindled optimism for a trade deal between the countries and boosted risk sentiment.

Spot gold was down 0.4% to $1,465.44 per ounce, reversing course from the Asian trading hours, when prices rose to their highest since Nov. 7 at $1,475.40. U.S. gold futures fell 0.4% to $1,465.70 per ounce.

European share markets reached a four-year high as a new extension granted by Washington to let U.S. companies keep doing business with Chinese telecoms giant Huawei boosted bets that the world’s largest economies could reach a trade truce. However, some uncertainty prevailed, after a report on Monday suggested that the mood in Beijing was pessimistic about the prospects of sealing an agreement. Gold is also being pressured by a drop in oil prices, QCR’s Fertig said.

Source : Reuters