Gold slipped overnight to its lowest in more than three months on increased appetite for riskier assets while US President Donald Trump failed to provide any information on the trade deal with China in his speech.
Spot gold slipped 0.1 per cent to $US1,453.70 per ounce, having touched its lowest since August 5 earlier.
US gold futures settled down 0.2 per cent at $US1,453.70 per ounce.
“The problem for gold right now is (Treasury) yields have risen, the probability that the Federal Reserve will tighten (monetary policy) has dropped and the equities market has returned very well,” said Bart Melek, head of commodity strategies at TD Securities.
Any reduction in aggressive behaviour on the trade front would drive investors away from bullion, he said.
World shares and benchmark government bond yields inched up, while the S&P 500 and Nasdaq indexes rose to record highs.
Meanwhile, the market was looking out for any reassurances on the Chinese-US trade agreement and for any delay in a decision on European car tariffs from Trump’s address at the Economic Club of New York.
“There is guarded optimism (in the market) and we are tilting to the idea that there’ll be some deal done, maybe not as comprehensive as both the sides were arguing,” Melek added.
However, Trump took aim once again at the Fed for its interest rate policy in a highly anticipated speech that offered no fresh details on his administration’s long-running trade row with China.
Gold, considered a safe store of value during economic and political uncertainties, has risen about 13 per cent so far this year on concerns regarding the US-China trade resolution and monetary policy easing by global central banks.
“The precious metals bulls are trying to stabilise their markets after recent strong selling pressure has driven prices to three-month lows,” Kitco Metals senior analyst Jim Wyckoff said in a note.
Bullion fell 3.6 per cent in the previous week and extended declines into a fourth straight session on Tuesday.
Also on investors’ radar was continuing unrest in Hong Kong, with a senior officer saying the protests had brought the city to “the brink of total breakdown”.
Among other precious metal, palladium gained 0.8 per cent to $US1,700.60 per ounce, having touched a one-month low in the previous session.
Silver dropped 0.7 per cent to $US16.74 an ounce and platinum fell 0.8 per cent to $US868.86, after touching its lowest since August 28 earlier in the session.