Gold slips to 1-week low

Gold prices fell on Monday to a more than one-week low as progress in US-China trade talks lifted risk sentiment, taking the sheen off safe-haven bullion even as the dollar retreated.
Spot gold dipped 0.2 per cent to $1,287.34 per ounce by 1502GMT, having hit $1,281.96, its lowest since April 4. US gold futures fell 0.4 per cent to $1,290.60 an ounce.
"Gold has clearly lost the upward trajectory that it was on, trying to find new supportive catalysts. We've seen continued positive murmuring on the trade negotiations in recent days. That's obviously a headwind for safe-haven gold," Capital Economics analyst Ross Strachan said.
US Treasury Secretary Steven Mnuchin said he hoped US-China trade talks were approaching a final lap. That, combined with strong Chinese export and euro zone industrial production data on Friday, has lifted global equities, bund yields and the euro. - Reuters
"The continued positiveness coming out of equity markets is acting as a drag on gold prices as people have liquidated their positions," Strachan said.
Gold fell below $1,300 last week and that was seen as a negative bias in charts used by technical traders, analysts and traders said.
The metal may now revisit its April 4 low of $1,280.59 per ounce, Reuters technical analyst Wang Tao said.
"Gold is trading directly on the technically important 100-day moving average at $1,288 per troy ounce. This line has held firm several times in the past two weeks," Commerzbank analysts said in a research note.
"However, if gold were to dip below it this time technical follow-up selling would probably ensue, exerting further pressure on the price."
A stronger U.S. economic picture of late has also dampened the appeal of the non-yielding metal, with US reports on Friday showing import prices surpassed expectations and consumer sentiment seen stabilising.
In other metals, increased inflows were observed into platinum, while palladium saw outflows for a seventh consecutive week, analysts at Societe Generale wrote in a note.
Spot platinum fell 1.1 per cent to $876.30 per ounce and palladium fell 0.7 per cent to $1,362.24 per ounce.
Silver was 0.6 per cent lower at $14.86 an ounce, after touching its lowest since December 26 at $14.82.
- Reuters