Investing.com - Gold prices edged down on Monday in Asia as U.S. President Donald Trump sent positive signals to ease U.S.-China tensions, undermining the appeal of the safe-haven asset.
Gold Futures for February delivery edged down 0.19% to $1,280.55 at 10:58PM ET (02:58 GMT) on the Comex exchange, while the U.S. dollar index, tracking the greenback against a basket of six currencies, rose 0.07% to 95.988.
On Saturday, Trump said in his tweets that negotiations are “moving very well” and “big progress” has been made. He also cited a “very good call” with Chinese President Xi Jinping on Saturday. In response, Xi said both countries are looking for “stable progress.”
Widely seen as a safe-haven asset, gold is often used by investors as a hedge against political and financial uncertainty.
Despite a small drop, gold prices hovered near a six-month high, well above the $1,280 level, amid uncertainty over U.S.-China trade relations, concerns over an economic slowdown, and a partial government shutdown in the U.S.
Entering a new year, market watchers will continue to follow closely the trade talks between China and the U.S. to look for cues, and Congress will reconvene after the holidays to address the partial government shutdown on January 4.