Plus   Neg

Gold Prices Ease On Improved Risk Appetite

Gold prices slid on Wednesday as easing U.S.-China trade tensions and dovish U.S. Fed remarks helped improve investors' appetite for risk.

Spot gold eased 0.15 percent to $1,281.25, while U.S. gold futures were down 0.29 percent at $1,282.15 per ounce.

Asian stocks followed Wall Street higher and European markets extended gains from the previous session after U.S. President Donald Trump tweeted, "talks with China are going very well!".

As trade talks between the United States and China entered a third day, there is speculation that a trade deal can be struck ahead of a March 1 deadline established by Trump and Chinese President Xi Jinping last month at the G-20 summit in Argentina.

The dollar index softened against a basket of currencies on expectations of a pause in interest rate increases by the Federal Reserve amid prospects of slower growth abroad.

The World Bank has downgraded its forecast for world economic growth to 2.9 percent this year from 3 percent in 2018, citing several downside risks.

"The outlook for the global economy has darkened. Global financing conditions have tightened, industrial production has moderated, trade tensions have intensified, and some large emerging market and developing economies have experienced significant financial market stress," the bank said.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT