Investing.com - Prices of the safe-haven gold fell on Tuesday in Asia amid renewed Sino-U.S. trade hopes.
U.S. Gold Futures for December delivery were down 0.4% to $1,505.75 by 1:25 AM ET (05:25 GMT).
The U.S. and China indicated late last week that progress had been made on agreeing to a trade deal, with U.S. officials suggesting that a deal could be signed this month.
Bloomberg cited people familiar with the plans and said that Chinese leader Xi Jinping might travel to the U.S. to sign deal.
Investor sentiment received further boost after U.S. Commerce Secretary Wilbur Ross hinted at loosening a ban on U.S. companies selling to Chinese telecoms group Huawei.
Analysts at JPMorgan said in a weekly note that the price action suggested many were still prepared to bet on another cut in rates in 2020. However, they warned that “looking into next year, a Fed on hold would represent a significant downside risk to our bullish outlook on gold prices.”
JPMorgan expects gold to be trading around $1,800 by the fourth quarter of next year.
The fall in gold prices today came as major stock markets in Asia traded in the green. Japan's Nikkei 225 jumped almost 2%, while Chinese stocks gained around 0.6%.