Gold inched down on Thursday, losing some of its safe-haven appeal after China said that it had agreed with the United States in the past two weeks to a phased cancellation of the additional tariffs imposed during their months-long trade war.
Spot gold fell 0.2% at $1,487.27 per ounce, as of 0831 GMT, while US gold futures were down 0.3% at $1,488.3 per ounce. "If we see the trade talks go further in a positive direction, we will see more pressure on gold," said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.
"If prices fall below $1,480 an ounce, we will see a fresh low at $1,465."
The tit-for-tat tariff war between the world's two biggest economies for the past 16 months have roiled financial markets and raised fears of a global economic slowdown, helping the safe-haven bullion rise nearly 16% this year.
"Sentiments are that some kind of deal will get done, also the Federal Reserve has said that it is not looking to do anything more this year (with interest rates)" and that is why gold's reaction has been relatively muted, said Brian Lan of Singapore dealer GoldSilver Central.