Investing.com - Gold prices dropped on Friday in Asia amid positive news on Brexit and Sino-U.S. trade news.
Stock markets traded higher today after news suggested that the U.S. and China might reach some sort of a preliminary, or partial, trade deal this week. Prices of the safe-haven gold, meanwhile, fell.
U.S. gold futures for December delivery dropped 0.2% to $1,498.85 by 1:22 AM ET (05:22 GMT).
The U.S. and China could announce a limited trade deal this week averting a further escalation in trade tensions, the New York Times reported, citing a U.S. Chamber of Commerce official who has been briefed by both negotiating teams.
Meanwhile, U.S. President Donald Trump said the first day of trade negotiations were “very, very good,” and that he will be meeting Chinese Vice Premier Liu He later in the day.
“Gold is still trading within its current consolidation range and I believe it’ll stay there until there’s an update regarding President Trump and Vice Premier Liu He’s meeting, positive or negative,” said Eric Scoles, commodities strategist at RJO Futures in Chicago.
“When gold does break out, I’d consider a close above $1,519.0 a strong bullish signal, or a close below $1,492.0 strongly bearish.”
Meanwhile, positive developments on the Brexit situation were also supportive for stocks and weighed on the safe-haven gold.
U.K. Prime Minister Boris Johnson and Irish Taoiseach Leo Varadkar said in a joint statement that they had held “constructive” talks on avoiding a disorderly Brexit and see “a pathway to a possible deal.”