Insignia Consultants | Gold slips to 2-week low on trade talk hopes, China holiday
Gold slips to 2-week low on trade talk hopes, China holiday
May 1 (Reuters) - Gold dropped to a two-week low on Thursday, pressured by signals of softening trade tensions and a holiday in top consumer China, while focus was also on Friday's U.S. payrolls report to gauge the economic outlook.
Spot gold was down 2.2% at $3,216.41 an ounce at 10:25 a.m. ET (1425 GMT), after hitting its lowest since April 14 earlier in the session. Prices hit a record $3,500.05/oz last week.
"There's hints of upcoming trade deals, and talk from China that the Trump administration had reached out. A risk-on trade is going on, leading to some profit-taking in gold's safe-haven," said Bob Haberkorn, senior market strategist at RJO Futures.
U.S. President Donald Trump said trade agreements could be reached with India, Japan, and South Korea. There is a "very good chance" of securing a deal with China, he added.
Additionally, a social media account affiliated with Chinese state media said the U.S. has approached China to seek talks over Trump's 145% tariffs.
Chinese markets were closed for the Labour Day holiday on May 1-5.
