Bullion and futures of the yellow metal traded a drop lower on Wednesday after the small increase of the preceding day. That may be showing what could become a trend for a market reacting to everyday headwinds from equities and the dollar, even as wider financial worries keep it anchored in the $1,200-to-$1,300 an ounce territory.
Spot gold, reflective of trades in bullion, was at $1,290.45 an ounce, fall $2.07, or 0.2% as U.S. stocks main stock indexes increased on reports that the U.S. and China were nearer to a trade deal.
Gold futures for June conveyance, traded on the Comex division of the New York Mercantile Exchange, settled the official trading session just 10 cents lower at $1,295.30 an ounce.
The Financial Times reported that top officers from Washington and Beijing have settle most of the matters in their long-running trade argument but were still bargaining over how to implement and enforce a trade contract.
"For the time being, the report of a trade deal with China is keeping the price of gold stationary," said Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texa