Investing.com - Gold prices fell on Friday in Asia as risk appetite improved following some positive Sino-U.S. trade news.
U.S. Gold Futures lost 0.5% to $1,466.45 by 12:40 AM ET (04:40 GMT).
The fall in gold prices came after White House economic adviser Larry Kudlow said overnight that Washington is close to reaching a partial trade deal with Beijing. Asian stock markets traded mostly in the green today following Kudlow’s comments.
Chinese Ministry of Commerce spokesman Gao Feng confirmed that the two sides are having “deep discussions about a phase one deal,” but said rolling back some of the existing tariffs is key to reaching an agreement.
Despite today’s losses, prices of the yellow metal have gained more than 14% this year as the on-again, off-again trade spat has roiled financial markets and attracted safe-haven demand.
Meanwhile, Risks associated with the political and economical issues like Brexit, Hong Kong and trade talks are “too great for something not to go wrong,” said Ilya Spivak, a senior currency strategist at DailyFx, in a CNBC report.