Gold prices fell nearly 1% on Monday as stock markets rose and the dollar strengthened after positive comments from China and the United States ignited optimism that bilateral trade agreements would be reached between the two countries. The high-level talks between China and the United States are scheduled to take place this week.
Spot gold fell 0.9% to $1,491.50 an ounce at 1844 GMT. U.S. gold futures fell 0.6% to close at $1,504.4 an ounce.
"Gold prices are still falling sharply in the face of potential'positive'trade news and cannot rebound, suggesting that after the non-farm employment report did not send an immediate danger signal last week, the market is depressed and there are still too many bulls," said Tai Wong, BMO's head of basic and precious metal derivatives trading.
According to tween's tweets, China's Ministry of Commerce said that China is ready to reach an agreement with the United States on the part of the two sides agreed to negotiate.
Meanwhile, Kudelo, director of the National Economic Commission of the White House, said on Monday that trade representatives from the United States and China could make progress when they met in Washington this week. He also said that the delisting of Chinese Listed Companies in the United States was "not within the scope of discussion".
China and the United States sent optimistic signals to ease tensions over the outcome of this week's trade negotiations and boost the U.S. stock market.
The dollar rose 0.2% against a basket of major currencies, further dampening the attractiveness of gold.
Investors also noted the minutes of the September meeting released Wednesday by the Federal Reserve.
"Last week, the ISM (Manufacturing) and non-manufacturing data were quite good for gold prices, but the employment data were not bad, which to some extent inhibited bullish sentiment in gold." Ryan McKay, commodity strategist at Daoming Securities, said.
U.S. Commodity Futures Trading Commission (CFTC) Friday
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