Investing.com – Gold prices slipped on Wednesday in Asia amid continuous optimism over U.S.-Sino trade talks.
Gold Futures for February delivery slipped 0.2% to $1,283.4 at 1:38 AM ET (06:38 GMT) on the Comex exchange.
China and the U.S. extended trade talks for an unscheduled third day on Wednesday, amid signs of progress on issues including buying of U.S. farm and energy commodities and increased access to China’s markets.
“China talks seem promising,” George Gero, precious metals analyst at RBC Wealth Management in New York, said in his daily note. “So, inevitable gold pullback today as the dollar also improved and so did the stock market.”
The news boosted investor sentiment and lifted Asian stocks, as most major markets gained more than 1% on Wednesday. Meanwhile, the safe-haven gold saw some headwind today amid a gradual recovery in risk assets.
The rally in riskier assets had accelerated since last Friday when Fed Chairman Jerome Powell indicated the central bank would be willing to rein in monetary policy tightening should the need arise.
Powell said that he was aware of economic risks and would be flexible in policy decision this year, easing concerns that the central bank might ignore recent data that suggested an economic slowdown.
Looking ahead, the spotlight now turns to the release of minutes from December’s FOMC meeting. Investors are increasingly convinced that the Fed could pause interest rate increases for this year following Powell’s comments last week, according to various reports.