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Gold Prices Show Substantial Move To The Downside

Risk is back on as gold prices retreated for a second session on Tuesday and the dollar traded higher, thanks to renewed optimism over U.S.-China trade talks.

Investor sentiment received a boost after the Financial Times reported that the U.S. is considering dropping tariffs on $112 billion worth of Chinese imports.

Gold futures for December delivery plunged $27.40 or 1.8 percent to $1,483.70 an ounce after edging down $0.30 an ounce on Monday.

According to reports, U.S. President Donald Trump is eager to sign the trade agreement somewhere in the U.S. after Chile canceled the Asia-Pacific Economic Cooperation summit due to local unrest.

Trump and Chinese President Xi Jinping are expected to meet in the U.S. soon to sign the first phase of a trade deal between the world's two largest economies.

The U.S. dollar was close to its highest in almost a week against a basket of rivals after recent data suggested the outlook for the world's largest economy is not as bad as some had feared.

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