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Gold Prices Fall On Positive Trade News

Gold prices fell on Thursday after China and the United States reportedly agreed to cancel tariffs on each other's goods for both sides to reach a "phase one" trade deal.

The two sides have agreed in the past two weeks to cancel tariffs imposed during their months-long trade war in different phases, the Chinese commerce ministry said.

The proportion of tariffs cancelled must be the same, and how many tariffs should be cancelled can be negotiated, Gao Feng, spokesman at the commerce ministry, told reporters.

Spot gold dropped 0.4 percent to $1,484.95 per ounce, while U.S. gold futures were down half a percent at $1,485.95 per ounce.

The U.S. dollar gained versus the yen on improved risk sentiment while the British pound was moving in a narrow range ahead of the Bank of England's latest policy decision, updated economic forecasts and quarterly inflation report. The interest-rate announcement is due at 7.00 am ET.

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