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Gold Futures Snap 8-day Winning Streak As Risk Appetite Improves

Gold prices drifted lower on Monday, snapping an 8-day winning streak, as traders sought riskier assets, amid easing trade tensions after the U.S. decided to drop its plan to impose tariffs on Mexican goods.

Data showing an unexpected growth in China's exports too contributed to the improvement in risk sentiment.

The dollar gained in strength against major currencies after the U.S. and Mexico

The dollar index rose to a high of 96.94 and despite easing to 96.75 subsequently, was still fairly up in positive territory, gaining more than 0.2% from previous close.

Gold futures for August ended down $16.80, or 1.3%, at $1,329.30 an ounce.

On Friday, gold futures for August ended up $3.40, or about 0.3%, at $1,246.10 an ounce.

Silver futures for July ended down $0.392, at $14.639 an ounce, while Copper futures for July ended up $0.0340, at $2.6615 per pound.

China's exports grew 1.1% in May, after falling 2.7% a month earlier, according to data released by the General Administration of Customs. Exports were expected to decline by 3.9%.

On the other hand, imports decreased 8.5% annually, compared to the expected drop of 3.5%.

As a result, overall trade balance showed a surplus of $41.65 billion in May, much bigger than the forecast of $22.3 billion.

Stocks moved higher today in reaction to news the U.S. and Mexico have reached an agreement to avert President Donald Trump's threatened tariffs on all Mexican imports.

Trump tweeted late Friday that the 5% tariff he threatened to impose on Mexican imports beginning today has been "indefinitely suspended."

"I am pleased to inform you that The United States of America has reached a signed agreement with Mexico. The Tariffs scheduled to be implemented by the U.S. on Monday, against Mexico, are hereby indefinitely suspended," he tweeted.

Details of the deal announced by the State Department indicated Mexico will take unprecedented steps to increase enforcement to curb irregular migration, including deploying 6,000 troops from its newly formed National Guard to its southern border.

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