Gold fell 2 per cent on Tuesday, the biggest one-day decline in more than a month, on expectations that the US could lift tariffs on Chinese exports, easing some concerns about the global recession.
Spot gold fell 1.8% to $1481.81 an ounce at 1903 GMT. US gold fell 1.8% to $1483.70 an ounce.
Gold prices, which tend to rise during economic and political crises, fell as low as $1479.25 an ounce in nearly three weeks earlier in the session, down as much as 2%, the biggest one-day percentage drop since the end of September.
Bob haberkorn, senior market strategist at rjo futures, said: "the main factors (falling gold price) are the cancellation of part of US tariffs on Chinese goods exported to the US and the progress of negotiation on some terms in the" phase I "trade agreement between the two sides."
"In addition, the sharp rise in global stock markets over the past few trading days, coupled with a small breakthrough in the US China tariff issue, puts all risk averse assets under pressure at the moment," haberkorn added.
China hopes to cancel more tariffs imposed by the United States on goods exported to China in September, as part of the Sino US "first stage" trade agreement. President Trump and Chinese President Xi Jinping are expected to sign the interim agreement this month.
Hopes of a Sino US trade truce and optimistic economic data have reignited optimism about the global economic outlook, pushing up the dollar index and bond yields.
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