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Gold Futures Drift Lower, Settle At One-week Low

Gold prices drifted lower Monday as the dollar held fairly steady and equities found support as the U.S. and China look all set to sign the phase on trade deal this week.

Easing worries over concerns about U.S.-Iran tensions weighed as well on gold.

The dollar index advanced to 97.53 in early trades, and despite paring gains subsequently, remains around the flat line. It was last seen at 97.35, just down from previous close.

Gold futures for February ended down $9.50, or about 0.6%, at $1,550.60, the lowest settlement in about a week.

On Friday, gold futures for February ended up $5.80, or about 0.4%, at $1,560.10 an ounce.

Silver futures for March ended down $0.109 at $17.996 an ounce, while Copper futures for March ended up $0.0475 at $2.8610 per pound.

Chinese Vice Premier Liu He is scheduled to visit Washington this week to sign the phase one trade deal, which is said to include reduced tariffs on Chinese goods in exchange for increased Chinese purchases of U.S. agricultural products.

Treasury Secretary Steven Mnuchin said in an interview on Sunday that the agreement calls for China to purchase $40 to $50 billion worth of U.S. agricultural products annually.

Mnuchin described the agreement as "very, very extensive," although the deal will not completely resolve the trade dispute between the U.S. and China.

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